Tencent Securities News (North Alley)Hang Seng Bank(00011.HK) closed down 0.52% in the afternoon to HK$1913, with a turnover of HK$209 million.

The company announced in the afternoon that as of the end of 2017, annual net profit was HK$20.018 billion, an increase of 23.48% over the previous year; profit before tax was HK$23.674 billion, an increase of 24.01% over the previous year. Basic earnings per share were HK$10.3, up 24.1% year over year. Hang Seng also announced a fourth interim dividend of HK$3.1, with a total annual dividend of HK$6.7.

Goldman Sachs pointed out that the “Basel Capital Association IV” implemented earlier had less impact on Hang Seng's capital level than expected. It is estimated that the bank will speed up the return of capital to shareholders by increasing the dividend ratio, so it is expected that its dividend rate will increase to 5%, while the current stock's dividend rate is about 3.3%. Goldman Sachs even pointed out that when it comes to interest-bearing stocks, Hang Seng is even more attractive than HSBC (00005).

In addition to the room for dividends to grow, profit growth will also accelerate, driven by rising interest rates,Goldman SachsEarnings forecasts per share for 3 years starting this year were raised by 2% to 5%, respectively; while market conditions became more volatile, Hang Seng's low volatility characteristics were more defensive, reflecting that the stock was also somewhat attractive in terms of dividends or growth.