Glonghui, Feb. 22 | Bank of America Securities released a report stating that Hang Seng Bank's net profit increased by 58.1% year-on-year to HK$17.8 billion last year, exceeding the bank's and market expectations by 5% to 7%. Profit before provision increased by 27.6% year-on-year, which was also 5% higher than the bank's forecast. The annual dividend per share increased by 58.5% year-on-year to HK$6.5. The fourth interim dividend was HK$3.2 per share. The dividend payout ratio fell 2 percentage points year-on-year to 73% last year. Return on equity (ROE) improved by 4.1 percentage points year-on-year to 11.3%. The common equity Tier 1 capital ratio increased 291 basis points to 18.1%. The bank raised Hang Seng's profit forecast for this year and next two years by 6% to 7%, and raised the target price from HK$92.3 to HK$100. It maintains a “neutral” rating. It believes that the company's revenue prospects this year are more challenging and that the provision is uncertain.