[ET Net News Agency, 5 March 2021] Citi Research lifted its target price for Hang Seng
Bank (HSB) (00011) to HK$150 from HK$125 and upgraded its rating to "neutral" from "sell".
The research house said HSB's 2H 2020 provisions of HK$940mn mark significant
improvement, thanks in part to HK$360mn stage 1/2 provision release resulting from
incremental improvement in the macro outlook.
HSB maintained a largely stable dividend payout ratio at 60%+, declared an FY2020 DPS of
HK$5.50, a move that reflects HSB's commitment to shareholders' return. Management
stressed future dividend decisions will depend on the bank's profitability, capital needs
for growth, macro outlook as well as regulatory views. Citi expects a resumption of
progressive DPS policy. (KL)