DBS: Maintains "Hold" rating on Hang Seng Bank (00011); raises target price to 103 Hong Kong dollars.

Standard Chartered issued a research report stating that it maintains a "hold" rating for HANG SENG BANK (00011), with a target price raised from HK$90 to HK$103. The bank has raised profit forecasts for the current and next year by 4% and 6% respectively, but expects profit growth to remain flat from 2025 to 2027 compared to last year due to lack of major catalysts, and credit costs are expected to remain similar to last year's levels during this period. Standard Chartered pointed out that HANG SENG BANK's profit last year increased by 3% year-on-year to HK$18.4 billion, meeting expectations. The non-performing loan ratio further increased by 80 basis points to 6.12% compared to six months ago, which is significantly higher than its peers, mainly due to the deterioration of commercial real estate assets in Hong Kong. The bank suggested that investors may be concerned that in extreme scenarios, commercial real estate mortgage assets in Hong Kong may face the risk of forced sale. However, the bank believes that the likelihood of this scenario occurring is low.