Core Viewpoint - Hang Seng Bank reported a decrease in net interest income and shareholder profit for the first half of 2025, but showed strong growth in retail banking and wealth management, indicating resilience in its business model despite market uncertainties [1][2] Financial Performance - Net interest income for the period was HKD 14.339 billion, a decrease of 7.39% year-on-year [1] - Shareholder profit was HKD 6.88 billion, down 30.46% compared to the previous year [1] - Basic earnings per share were HKD 3.34 [1] Growth Drivers - Retail banking and wealth management were the main growth drivers, with wealth income increasing by 43% year-on-year [1] - Insurance product and asset management income also rose by 18% compared to the same period last year [1] - New life insurance premiums grew by 57% year-on-year, positioning Hang Seng Insurance as the second in the life insurance market [1] Revenue Sources - The bank made significant progress in diversifying its revenue sources, with strong income from wealth management across multiple product categories [1] - Increased trading activity in the Hong Kong stock market boosted income from securities brokerage and related services [1] - Net service fee income saw significant growth due to contributions from financial instruments [1] Interest Income Challenges - Net interest income decreased by HKD 11.44 billion, or 7%, primarily due to a 3% reduction in average total customer loans and a decline in market interest rates [1] - The Hong Kong Interbank Offered Rate has remained low since May 2025, impacting interest income [1] - The bank has implemented measures to manage product margins and long-term hedging to maintain interest stability [1] Management Outlook - The CEO expressed confidence in the bank's ability to navigate challenges and achieve sustainable growth through diversified income sources and investment in talent and technology [2] - The bank remains cautiously optimistic about the long-term growth prospects in Hong Kong, despite market uncertainties [2]

Core Viewpoint - Hang Seng Bank reported a decrease in net interest income and shareholder profit for the first half of 2025, but showed strong growth in retail banking and wealth management segments [1][2] Financial Performance - Net interest income for the period was HKD 14.339 billion, a year-on-year decrease of 7.39% [1] - Shareholder profit was HKD 6.88 billion, down 30.46% compared to the previous year [1] - Basic earnings per share stood at HKD 3.34 [1] Growth Drivers - Retail banking and wealth management were the main growth drivers, with wealth management income increasing by 43% year-on-year [1] - Insurance product and asset management income also rose by 18% compared to the same period last year [1] - New life insurance premiums saw a significant increase of 57% year-on-year, positioning Hang Seng Insurance as the second in the life insurance market [1] Revenue Sources - The bank made significant progress in diversifying its revenue sources, with notable growth in securities brokerage and related services due to active trading in the Hong Kong stock market [1] - Net service fee income experienced substantial growth, supported by the performance of various product categories in wealth management [1] Interest Income Challenges - Net interest income decreased by HKD 11.44 billion, or 7%, primarily due to a 3% reduction in average total customer loans and a decline in market interest rates [1] - The Hong Kong Interbank Offered Rate has remained low since May 2025, impacting interest income [1] - The bank has implemented measures to manage product margins and maintain interest stability through long-term hedging [1] Management Outlook - The CEO expressed confidence in the bank's ability to navigate challenges and achieve sustainable growth through diversified income sources and a focus on talent and digital technology [2] - The bank remains cautiously optimistic about the long-term growth prospects in Hong Kong, despite market uncertainties [2]