Hang Seng Bank Limited 2001 Results - Highlights

• Operating profit before provisions down 0.3 per cent to HK$11,503 million
  (HK$11,540 million in 2000)

  Pre-tax profit down 1.4 per cent to HK$11,514 million
  (HK$11,675 million in 2000)

  Attributable profit up 1.0 per cent to HK$10,114 million
  (HK$10,014 million in 2000)

  Return on average shareholders' funds of 23.0 per cent
  (22.7 per cent in 2000)

  Total assets fell 5.2 per cent to HK$474.8 billion
  (HK$500.8 billion at 31 December 2000)

  Earnings per share up 1.0 per cent to HK$5.29
  (HK$5.24 per share in 2000)

  Dividend per share up 2.1 per cent to HK$4.90
  (HK$4.80 per share in 2000)

  Total capital ratio of 15.3 per cent (15.3 per cent at 31 December 2000);
  tier 1 capital ratio of 12.3 per cent (11.9 per cent at 31 December 2000)

• Cost:income ratio of 26.3 per cent
  (24.4 per cent in 2000)
  

Comment by David Eldon, Chairman "The banking industry experienced an exceptionally difficult year in 2001. Despite successive cuts in local interest rates, the Hong Kong economy continued its prolonged downturn. However, Hang Seng maintained the profitability of its core business with attributable profit increasing marginally to HK$10,114 million.

"The economic outlook for 2002 largely depends on the prospect of a recovery in the United States. The challenges for the banking sector continue to be intense competition, high liquidity, sluggish credit demand and narrowing margins.

"In meeting these challenges Hang Seng will continue to build on its strong customer franchise by launching innovative financial services, thus diversifying its income streams. While investing prudently for future growth we will maintain our policy of strict financial discipline."

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