＜Research＞UBS Expects Weak Net Interest Income Growth in 1H24 for HANG SENG BANK w/ Continuous Improvement in Non-Interest Income

　　UBS became more cautious on HANG SENG BANK (00011.HK) -0.300 (-0.290%) Short selling $38.66M; Ratio 16.747% , based on a potentially weaker-than-expected trend in net interest income.

　　Factors contributing to this include a 49 bps drop in Hong Kong's one-month HIBOR YTD compared with 2H23, a 2% decline in banking system loan in 4M24, and the 1 ppt fall in sector-wide CASA ratio to 40% over the same period.

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　　UBS expected HANG SENG BANK's net interest margin to be broadly stable or slightly narrower this year, with net interest income expected to decline in a low to mid single-digit. However, non-interest income will improve due to credit card and wealth management fee income.

　　UBS now rated HANG SENG BANK at Neutral, with a target price of $94.5.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-06-24 16:25.)

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