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]