Hong Kong-headquartered Hang Seng Bank has seen its bad loan ratio rise in recent quarters. This has reportedly led to worries from London-based parent HSBC.
Top executives from Hang Seng will be more closely involved in Asia Pacific risk management discussions at HSBC, according to a «Reuters» report citing unnamed sources. The plan is to share expertise from HSBC with regard to corporate, retail, wealth and private banking. Discussions are still ongoing but implementation is expected to occur this year.
Hang Seng is a Hong Kong-headquartered lender and a majority-owned (62 percent) subsidiary of HSBC.
Non-Performing Loans
Hang Seng’s non-performing loan ratio has been increasing due in part to exposure to mainland China’s property sector. According to its first-half results in 2023, gross impaired loans and advances as a percentage of gross loans and advances to customers was 2.85 percent, up from 1.92 percent a year earlier.
«HSBC recognizes the importance of a strong risk culture. Active risk management helps us to achieve our strategy, serve our customers and communities and grow our business safely,» said a spokesperson for the British lender. «HSBC Group entities stand to benefit from the strengths of the group.»
