Performance

Our operating principles and strategy are designed to enhance our position as the leading domestic bank in Hong Kong and a preferred choice of personal and corporate clients for wealth management and trade solutions in the Greater China region to achieve sustainable business growth while making a significant contribution to the positive long-term development of our communities.

External recognition of our business success during 2013 includes Hang Seng being named the Best Domestic Bank in Hong Kong for the 14th consecutive year by The Asset, ranked as having the Strongest Bank Balance Sheet in Hong Kong and Asia Pacific by The Asian Banker, and included among the world's Top 500 Banking Brands by The Banker. We were also named the Most Attractive Employer in the Banking and Financial Services Sector in Hong Kong by Randstad.

In addition to providing quality banking and financial services, our investment in and active support for a broad range of educational, social welfare, sports development and environmental stewardship initiatives is helping to create a well-educated, inclusive and healthy society that, in turn, will support our long-term business growth.

For the second consecutive year, we were the only Hong Kong company included in the Global 100 Most Sustainable Corporations list compiled by Corporate Knights.


Measure Our Performance

FINANCIAL 2013# 2012* 2013 vs 2012
Operating profit (HK$m) 18,410 15,487* +2,923
Profit attributable to shareholders (HK$m) 26,678 19,327* +7,351
Shareholders' funds (HK$m) 107,778 92,323 +15,455
Total assets (HK$m) 1,143,730 1,077,096 +66,634
Total liabilities (HK$m) 1,035,952 984,773 +51,579
Earnings per share (HK$) 13.95 10.11* +3.84
Dividends per share (HK$) 5.50 5.30 +0.2
(percentage point)
Return on average shareholders' funds (%) 25.40 22.80* +2.6 p.p.
Return on average total assets (%) 2.40 1.90 +0.5 p.p.
Cost efficiency ratio (%) 32.40 34.90* -2.5 p.p.
Average liquidity ratio (%) 34.90 36.90 -2.0 p.p.
Capital Ratio under Basel II:
Capital adequacy ratio - as at 31 Dec (%) N/A 14.00 N/A
Core capital ratio - as at 31 Dec (%) N/A 12.20 N/A
Capital Ratio under Basel III:
Common Equity Tier 1 Capital Ratio 13.80 N/A N/A
Tier 1 Capital Ratio 13.80 N/A N/A
Total Capital Ratio 15.80 N/A N/A
ECONOMIC
Tax expenses (HK$m) 1,818 2,667 -849
Number of employees (31 Dec - FTE) 9,856 9,680 +176
Employee compensation and benefits (HK$m) 4,432 4,256* +176
Number of shareholders (31 Dec) 20,212 20,282 -70
COMMUNITY
Number of outlets (31 Dec) 220 220 --
Number of customers as at 31 Dec (m) >3 3.2 --
Number of volunteer hours contributed <27,000 >25,000 +1,000
Charitable donations and community sponsorships (HK$m) 27 21.5 +5.5
ENVIRONMENTAL
Greenhouse gas emissions
(kilotonnes CO2)Note A		 24.31 24.34 -0.14%
Electricity consumption (GWh) 35.27 36.61 -3.66%
Water consumption ('000 m3) 64.81 65.90 -1.66%
IT/electrical waste recycled (tonnes) 58.84 54.94 7.09%

Data coverage: Hang Seng Bank's Hong Kong operations
Key: CO2: Carbon dioxide   GWh: Gigawatt hours   m3: Cubic metres
*Figure restated
# From 1 Oct 2012 to 30 Sep 2013
^ From 1 Oct 2011 to 30 Sep 2012
Note A Includes greenhouse gas emissions arising from energy

Examples of our indirect economic contributions include our strong support for small and medium-sized enterprises (SMEs). By working with these home-grown businesses, we support the local economy and create new local employment opportunities and wealth.

In addition to our direct economic contributions, our subsidiary Hang Seng Indexes Company Limited is compiling and managing the Hang Seng Index (HSI), which was launched in 1969, and an expanding range of other indexes tracking various segments of stock markets in Hong Kong and on the Mainland. As the leading index tracking the Hong Kong stock market, one of the world's most important stock markets, the HSI indirectly provides a tool for trading the shares of blue-chip companies in Hong Kong.
Business Awards and Recognition
Best Domestic Bank in Hong Kong (for 14th consecutive year)
The Asset
The Strongest Bank Balance Sheet in Hong Kong and Asia Pacific
The Asian Banker
Most Attractive Employer in the Banking and Financial Services Sector (Hong Kong)
Randstad
Hong Kong Domestic Trade Finance Bank of the Year
Asian Banking & Finance
Best SME's Partner Award
The Hong Kong General Chamber of Small and Medium Business
Trusted Brands Gold Award - Bank (Hong Kong)
Trusted Brands Gold Award - Credit Card Issuing Bank (Hong Kong)
Reader's Digest
CSR Recognition
Third consecutive year as constituent stock of Dow Jones Sustainability Asia Pacific Index
Twelfth consecutive year as a constituent stock of FTSE4Good Global Index
Second consecutive year on Global 100 Most Sustainable Corporations list compiled by Corporate Knights
First local Hong Kong bank to attain an A+ Global Reporting Initiative Sustainability rating for CR Report (2011)
First local Hong Kong bank to attain ISO 14001 certification for all offices and branches (2011)
Fourth consecutive year as constituent stock of Hang Seng Corporate Sustainability Index
Eleventh consecutive year as a Hong Kong Council of Social Service Caring Company

Credit Ratings

MOODY'S
Hang Seng Bank Long-term Bank Deposit
(local and foreign currency)		 Aa2
Short-term Bank Deposit
(local and foreign currency)		 Prime -1
Bank Financial Strength B
Outlook Stable
Hang Seng China Long-term Bank Deposit
(local and foreign currency)		 A3
Short-term Bank Deposit
(local and foreign currency)		 Prime -2
Bank Financial Strength D-
Outlook Stable
STANDARD & POOR'S
Hang Seng Bank Long-term Counterparty Credit
(local and foreign currency)		 AA-
Short-term Counterparty Credit
(local and foreign currency)		 A-1+
Outlook Stable
Hang Seng China Long-term Counterparty Credit
(local and foreign currency)		 AA-
Short-term Counterparty Credit
(local and foreign currency)		 A-1+
Outlook Stable


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