Group 1 - UBS forecasts a significant decline in Hang Seng Bank's (00011) earnings per share for the first half of this year due to compression in net interest income (NII) and an expected rise in expected credit loss (ECL) expenses [1] - The bank is currently trading at 1.3 times the one-year forward price-to-book ratio, with a target price of HKD 112 and an estimated dividend yield of 5.4% for 2025 based on the target price [1] - Hang Seng Bank is expected to announce a new share buyback plan alongside its earnings report on July 30, despite a weak profit outlook [1] Group 2 - UBS notes that the Hong Kong Interbank Offered Rate (HIBOR) has remained below 1% for a month, deviating from seasonal patterns, and predicts HIBOR will stabilize between 2% and 2.5% by year-end [2] - As a result of the low HIBOR environment, UBS has revised down its forecast for Hang Seng Bank's NII for 2025, while slightly increasing the forecast for non-interest income due to potential boosts in net fee income and trading income [2] - UBS has also slightly raised its estimate for ECL expenses for Hang Seng Bank in light of cautious views on non-performing loan (NPL) risks [2]