[ET Net News Agency, 20 February 2018] Goldman Sachs said Hang Seng Bank's (00011)
reported 2H 2017 EPS of HK$5.15 (+25% yoy) and was +9% versus GS's estimate.
CET1 ratio came in better than expected at 16.5%, +30bps HoH. NIM of 1.94% flat HoH
versus GS's expectation of 1.92%. Loan growth was robust at +15% yoy growth, +6% versus
GS's forecast. The better NIM and loan growth outcome drove the 6% NII beat, which
explained most of the bottom line beat.
Credit cost explained the remainder of the earnings beat as it came in below
expectations at 10bps annualised 2H 2017 versus GS's estimate of 17bps.
Goldman maintained its "buy" rating on Hang Seng, with a target price of HK$220. (KL)