Business Monitor International


Hong Kong Commercial Banking Report

Published 03 November 2014

  • 74 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Hong Kong Commercial Banking Report
Commercial Banking Sector Indicators
Date Total assets Client loans Bond portfolio Other Liabilities and capital Capital Client deposits Other
February 2013, HKDbn 15,149.0 5,671.2 3,110.6 6,367.3 15,264.8 1,971.7 8,435.9 4,857.2
February 2014, HKDbn 17,343.7 6,908.4 n.a. n.a. 17,343.7 n.a. 9,330.0 n.a.
% change y-o-y 14.5% 21.8% n.a. n.a. 13.6% n.a. 10.6% n.a.
February 2013, USDbn 1,953.4 731.3 401.1 821.0 1,968.3 259.1 1,087.8 626.3
February 2014, USDbn 2,235.0 890.2 n.a. n.a. 2,235.0 n.a. 1,202.3 n.a.
% change y-o-y 14.4% 21.7% n.a. n.a. 13.5% n.a. 10.5% n.a.
Source: BMI; Central banks; Regulators
Commercial Banking Sector Key Ratios, February 2014
Loan/deposit ratio Loan/asset ratio Loan/GDP ratio GDP Per Capita, USD Deposits per capita, USD
74.04% 39.83% 307.46% 41,914.0 166,681.0
Rising Rising Rising n.a. n.a.
Source: BMI; Central banks; Regulators
Annual Growth Rate Projections 2014-2019 (%)
Assets Loans Deposits
Annual Growth Rate 7 8 7
CAGR 7 8 7
Ranking 41 33 42
Source: BMI; Central banks; Regulators
Ranking Out Of 73 Countries Reviewed In 2015
Loan/deposit ratio Loan/asset ratio Loan/GDP ratio
64 64 2
Local currency asset growth Local currency loan growth Local currency deposit growth
39 35 39
Source: BMI; Central banks; Regulators
Commercial Banking Sector Indicators, 2012-2019
2012 2013 2014e 2015f 2016f 2017f 2018f 2019f
Total assets, HKDbn 14,858.7 16,944.1 18,130.2 19,399.3 20,757.2 22,210.2 23,765.0 25,428.5
Total assets, USDbn 1,917.2 2,185.2 2,333.2 2,496.6 2,671.3 2,858.3 3,058.4

Table of Contents

BMI Industry View
7
Table: Commercial Banking Sector Indicators
7
Table: Commercial Banking Sector Key Ratios, February 2014
7
Table: Annual Growth Rate Projections 2013-2018 (%)
7
Table: Ranking Out Of 73 Countries Reviewed In 2014
8
Table: Commercial Banking Sector Indicators, 2011-2018
8
SWOT
9
Commercial Banking
9
Political
10
Economic
11
Business Environment
12
Industry Forecast
13
Little Threat To HKD Band In Near-Term
15
Property Measures Also On Hold For Now
15
Banking Sector To Lose Out
16
Industry Risk Reward Ratings
17
Asia Commercial Banking Risk/Reward Index
17
Table: Asia Commercial Banking Risk/Reward Index
18
Market Overview
19
Asia Commercial Banking Outlook
19
Table: Banks' Bond Portfolios, 2013
19
Table: Comparison of Loan/Deposit & Loan/Asset & Loan/GDP ratios, 2014
19
Table: Comparison of Total Assets & Client Loans & Client Deposits (USDbn)
20
Table: Comparison of USD Per Capita Deposits, 2014
21
Macroeconomic Forecasts
22
High Public Investment Unlikely To Continue
22
Trade, Private Consumption Outlook Also In The Crosshairs
24
Table: Economic Activity (Hong Kong 2009-2018)
25
Competitive Landscape
26
Market Structure
26
Protagonists
26
Table: Protagonists In Hong Kong's Commercial Banking Sector
26
Definition Of The Commercial Banking Universe
26
List Of Banks
27
Table: Licensed Banks In Hong Kong
27
Company Profile
32
Bank of China (Hong Kong)
32
Table: Stock Market Indicators
34
Table: Balance Sheet (HKDmn)
34
Table: Balance Sheet (USDmn)
34
Table: Key Ratios (%)
35
Bank of Communications Co
36
Table: Stock Market Indicators
37
Table: Balance Sheet (HKDmn)
38
Table: Balance Sheet (USDmn)
38
Table: Key Ratios (%)
38
Bank of East Asia
39
Table: Stock Market Indicators
41
Table: Balance Sheet (HKDmn)
41
Table: Balance Sheet (USDmn)
41
Table: Key Ratios (%)
42
Hang Seng Bank
43
Table: Stock Market Indicators
44
Table: Balance Sheet (HKDmn)
45
Table: Balance Sheet (USDmn)
45
Table: Key Ratios (%)
45
HSBC
46
Table: Stock Market Indicators
48
Table: Balance Sheet (USDmn)
48
Table: Key Ratios (%)
49
Regional Overview
50
Asia Overview
50
Political Concerns To Weigh-
55
Virtuous Cycle For Economic Growth
56
Global Industry Overview
57
Global Commercial Banking Outlook
57
Financial Sector Reform A Key Factor In Loan Growth
62
Demographic Forecast
66
Demographic Outlook
66
Table: Hong Kong's Population By Age Group, 1990-2020 ('000)
67
Table: Hong Kong's Population By Age Group, 1990-2020 (% of total)
68
Table: Hong Kong's Key Population Ratios, 1990-2020
69
Table: Hong Kong's Rural And Urban Population, 1990-2020
69
Methodology
70
Industry Forecast Methodology
70
Sector-Specific Methodology
71
Risk/Reward Index Methodology
72
Table: Commercial Banking Risk/Reward Index Indicators
73
Table: Weighting Of Indicators
74

The Hong Kong Commercial Banking Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the commercial banking sector in Hong Kong. It examines key drivers of growth and future prospects, including the macroeconomic situation, the level of development and potential for growth of the banking sector, the commercial initiatives of major players, government policy and the regulatory environment. Leading banks are profiled, covering total assets, liabilities, client deposits, lending, bond holdings, main products and services, competitive positioning and ownership structure.

BMI's Hong Kong Commercial Banking Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the commercial banking industry in Hong Kong.

Key Benefits

  • Benchmark BMI's independent commercial banking industry forecasts for Hong Kong to test other views - a key input for successful budgeting and strategic business planning in the Hong Kong commercial banking market.
  • Target business opportunities and risks in Hong Kong through our reviews of latest industry trends, regulatory changes, and major deals, investments and macroeconomic developments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Analysis.

Coverage

BMI Industry View

Key insights into the commercial banking market, covering industry trends, key players and the regulatory environment, plus snapshots of assets, liabilities, client loans and client deposits in local currency and USD.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the commercial banking sector and within the broader political, economic and business environment.

BMI’s Commercial Banking Risk Reward Index

BMI’s Risk Reward Indices provide investors and participants looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

Global, Regional and Country Industry Overviews

In-depth analysis of the major global and regional developments in the market, which can be linked with the country industry overview, providing cross-country investment, product and financing trends that will affect each market, supported by BMI’s global and regional industry forecasts.

BMI Economic Forecasts

BMI forecasts to end-2019 for all headline macroeconomic indicators, including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.

  • Competitive Landscape Market Data: Analysis of market size, dominant trends, competitive landscape and key annual and quarterly data.
  • Company Database: A comprehensive breakdown of KPIs of the leading commercial banks, including assets and liabilities, client loans, client deposits, capital, bond holdings, loan-deposit ratio, tier 1 capital, return on assets, earnings per share and market capitalisation.

Company Profiles and SWOTs

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.

The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources
The Commercial Banking Reports draw on a network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc