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Hong
Kong: Lean and Planning to Diet
Snapshot: 26 banks in the 500 (1999: 26) Assets: $398.2b.
($370.1b.) Profits: $4.6b. ($3.5b.)
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Things
are looking up for Hong Kong banks. The U.S. Federal Reserve may be
done with interest rate hikes for the foreseeable future. The local
economic recovery is in full swing and China's growth seems back on
track. Hong Kong banks are already among the region's leanest. But
is a fiercely competitive environment becoming destructive?
RESTRUCTURING For years, a shakeout among Hong Kong's family-owned
banks has been predicted. It may be happening. One small bank, First
Pacific, is on the block. At least two more are likely to be put up
for sale. Expect Singapore institutions to be buyers. They may be
willing to pay top dollar whereas the locals want discounts.
LENDING Corporates have been tapping capital markets and the
property sector has been sluggish, both of which have depressed bank
lending. Expect a recovery early next year after the property market
revives a bit.
REGULATION The Hong Kong Monetary Authority has nearly succeeded
in destroying Hong Kong's once-cozy banking cartel.
Performance
Topnotchers: 10 Best Performing Banks
| |
Institution |
Assets
$
Mill |
Profits
$
Mill |
Profit
as
% of |
500
Rank
|
| Assets |
Equity |
|
1
|
HONGKONG
& SHANGHAI BANKING
|
209,986
|
2,295.5
|
1.1%
|
22.5%
|
14
|
|
2
|
HANG
SENG BANK
|
56,676
|
1,065.0
|
1.9%
|
21.0%
|
38
|
|
3
|
BANK
OF EAST ASIA
|
18,633
|
190.9
|
1.0%
|
9.9%
|
117
|
|
4
|
DAO
HENG BANK
|
16,907
|
153.4
|
0.9%
|
10.4%
|
123
|
|
5
|
NANYANG
COMMERCIAL BANK
|
11,006
|
71.2
|
0.6%
|
5.6%
|
171
|
|
6
|
WING
LUNG BANK
|
7,658
|
109.7
|
1.4%
|
14.0%
|
197
|
|
7
|
SHANGHAI
COMMERCIAL BANK
|
7,406
|
122.0
|
1.6%
|
11.8%
|
203
|
|
8
|
WING
HANG BANK
|
6,467
|
87.6
|
1.4%
|
14.1%
|
224
|
|
9
|
PO
SANG BANK
|
6,326
|
115.5
|
1.8%
|
10.4%
|
226
|
|
10
|
CITIC
KA WAH BANK
|
6,254
|
13.9
|
0.2%
|
2.0%
|
230
|
Write to Asiaweek at mail@web.asiaweek.com
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Rating
show the number of banks in each category; "E" is the lowest
grade for financial soundness.
Souce: Moody's Investors Service
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