Hang Seng Bank year profit down 41% to HK$16.2bn; div HK$2.8

    Hang Seng Bank (00011) said its profit attributable to shareholders for the year ended 31 December 2016 dropped 41% year-on-year to HK$16,212 million.
  Excluding the gain on partial disposal of Industrial Bank in 2015, attributable profit dropped 4%.
  Basic and diluted earnings per share were HK$8.3.
  Net interest income amounted to HK$22,254 million, an increase of 5.1% from a year earlier. Net interest margin improved by two basis points to 1.85%. Operating profit excluding loan impairment charges and other credit risk provisions was down 1% to HK$20,347 million.
  At 31 December 2016, Hang Seng Bank's common equity tier 1 capital ratio was 16.6% and our tier 1 capital ratio was 17.9%, compared with 17.7% and 19.1% respectively at the end of 2015. Its total capital ratio was 20.8%, compared with 22.1% a year earlier.
  Gross impaired loans and advances increased by 18%, to HK$3,235 million compared with last year-end, due to the downgrade of a few corporate and commercial customers in Hong Kong and mainland China. Gross impaired loans and advances as a percentage of gross loans and advances to customers stood at 0.46% at 31 December 2016, compared with 0.55% at the end of June 2016 and 0.40% at the year-end of 2015. Return on average ordinary shareholders' equity was 12.1% (20.7% for 2015).
  The Hang Seng Bank Directors have declared a fourth interim dividend of HK$2.8 (2015: HK$2.4) per share, payable on 28 March 2017.