Zhi Tong Cai Jing·2025-07-31 04:06Group 1 - The core viewpoint of the report is that CICC has adjusted its revenue and net profit forecasts for Hang Seng Bank for 2025 and 2026, reflecting a recovery in revenue but significant provisioning impacts [1] - The bank's 2Q25 revenue met expectations, while profit fell short due to impairment losses related to Hong Kong commercial real estate [2] Group 2 - In 1H25, net interest income decreased by 7%, with weak loan demand and declining interest margins, primarily due to lower Hibor rates [3] - The bank's non-interest income grew significantly, with a 23% increase in fee income and a 46% increase in other non-interest income, driven by securities brokerage services and foreign exchange trading [4] Group 3 - The substantial increase in impairment losses was the main reason for the lower-than-expected net profit, with credit costs rising to 1.19% due to higher provisions for new non-performing loans in Hong Kong's commercial real estate sector [5] - Despite the decline in net profit, the bank increased its dividend and maintained share buybacks, declaring a dividend of HKD 1.3 per share for Q2 and a total of HKD 2.6 per share for the first half, an 8% increase year-on-year [6]