Hong Kong Commercial Banking Report

Providing expert analysis, independent forecasts and competitive intelligence on the commercial banking industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Commercial Banking Risk Reward Index, Economic Forecasts, Global, Regional and Country Industry Overviews and Company Profiles.

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  • Gain insight on emerging trends that could support, strengthen or disrupt your activities in the market
  • Get a full view of the competitive landscape to assess your market position
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Hong Kong Commercial Banking Report
Product Price
$1,295.00
Commercial Banking Sector Indicators
Date Total assets Client loans Bond portfolio Other Liabilities and capital Capital Client deposits Other
Source: BMI; Central banks; Regulators
January 2015, HKDbn 18,894.3 7,365.5 3,544.1 7,984.7 18,894.3 2,450.8 10,182.6 6,260.8
January 2016, HKDbn 19,442.5 7,531.1 3,734.8 8,176.6 19,442.5 2,715.6 10,925.6 5,801.3
% change y-o-y 2.9% 2.2% 5.4% 2.4% 2.9% 10.8% 7.3% -7.3%
January 2015, USDbn 2,437.4 950.2 457.2 1,030.0 2,437.4 283.7 1313.6 807.7
January 2016, USDbn 2,497.0 967.2 479.7 1,050.1 2,497.0 318.5 1403.2 745.1
% change y-o-y 2.4% 1.8% 4.9% 2.0% 2.4% 12.3% 6.8% -7.7%
Commercial Banking Sector Key Ratios, January 2016
Loan/deposit ratio Loan/asset ratio Loan/GDP ratio GDP Per Capita, USD Deposits per capita, USD
Source: BMI; Central banks; Regulators
68.93% 38.74% 312.47% 42,212.6 192,405.8
Falling Falling Falling na na
Annual Growth Rate Projections 2015-2020 (%)
Assets Loans Deposits
Source: BMI; Central banks; Regulators
Annual Growth Rate 5 5 7
CAGR 4 4 7
Ranking 59 61 39
Ranking Out Of 75 Countries Reviewed In 2016
Loan/deposit ratio Loan/asset ratio Loan/GDP ratio
Source: BMI; Central banks; Regulators
68 66 1
Local currency asset growth Local currency loan growth Local currency deposit growth
62 66 36
Commercial Banking Sector Indicators, 2013-2020
2013 2014 2015e 2016f 2017f 2018f 2019f 2020f
e/f = estimate/forecast. Source: BMI; Central banks; Regulators
Total assets, HKDbn 16,944.1 18,435.2 18,988.2 19,368.0 19,949.0 20,946.5 21,993.8 23,093.5
Total assets, USDbn 2,185.2 2,377.2 2,443.7 2,492.5 2,567.3 2,695.7 2,830.4 2,972.0
Client loans, HKDbn 6,457.3 7,277.4 7,423.0 7,423.0 7,645.7 8,027.9 8,429.3 8,850.8
Client loans, USDbn 832.8 938.4 955.3 955.3 983.9 1,033.1 1,084.8 1,139.0
Client deposits, HKDbn 9,178.0 9,820.5 10,507.9 11,243.5 12,030.5 12,872.6 13,773.7 14,737.9
Client deposits, USDbn 1,183.6 1,266.3 1,352.3 1,447.0 1,548.2 1,656.6 1,772.6 1,896.7
BMI Industry View
7
Table: Commercial Banking Sector Indicators
7
Table: Commercial Banking Sector Key Ratios, January 2016
7
Table: Annual Growth Rate Projections 2015-2020 (%)
7
Table: Ranking Out Of 75 Countries Reviewed In 2016
8
Table: Commercial Banking Sector Indicators, 2013-2020
8
SWOT
9
Commercial Banking
9
Political
10
Economic
11
Operational Risk
12
Industry Forecast
14
Economic Analysis
14
Commercial Banking Risk/Reward Index
19
Asia Commercial Banking Risk/Reward Index
19
Table: Asia Commercial Banking Risk/Reward Index
20
Market Overview
21
Economic Growth Outlook
21
Asia Commercial Banking Outlook
24
Table: Banks' Bond Portfolios, 2014
24
Table: Comparison of Loan/Deposit & Loan/Asset & Loan/GDP ratios, 2016
24
Table: Comparison of Total Assets & Client Loans & Client Deposits (USDbn)
25
Table: Comparison of USD Per Capita Deposits, 2016
26
Competitive Landscape
27
Market Structure
27
Protagonists
27
Table: Protagonists In Hong Kong's Commercial Banking Sector
27
Definition Of The Commercial Banking Universe
27
List Of Banks
28
Table: Licensed Banks In Hong Kong
28
Company Profile
33
Bank of China (Hong Kong)
33
Table: Stock Market Indicators
35
Table: Balance Sheet (HKDmn)
35
Table: Balance Sheet (USDmn)
36
Table: Key Ratios (%)
36
Bank of Communications Co
37
Table: Stock Market Indicators
38
Table: Balance Sheet (HKDmn)
38
Table: Balance Sheet (USDmn)
39
Table: Key Ratios (%)
39
Bank of East Asia
40
Table: Stock Market Indicators
42
Table: Balance Sheet (HKDmn)
42
Table: Balance Sheet (USDmn)
43
Table: Key Ratios (%)
43
Hang Seng Bank
44
Table: Stock Market Indicators
46
Table: Balance Sheet (HKDmn)
46
Table: Balance Sheet (USDmn)
46
Table: Key Ratios (%)
47
HSBC
48
Table: Stock Market Indicators
50
Table: Balance Sheet (HKDmn)
51
Table: Balance Sheet (USDmn)
51
Table: Key Ratios (%)
51
Regional Overview
52
Industry Trend Analysis
52
Global Industry Overview
58
Industry Forecast
58
The Reserves Penalty
58
Mixed Results So Far
61
Not Far Enough, Or Too Far Already-
66
In The End, Negative Rates Unlikely To Become Much More Prevalent
67
Table: Negative Interest Rates - Summary
69
Demographic Forecast
70
Table: Population Headline Indicators (Hong Kong 1990-2025)
71
Table: Key Population Ratios (Hong Kong 1990-2025)
71
Table: Urban/Rural Population & Life Expectancy (Hong Kong 1990-2025)
72
Table: Population By Age Group (Hong Kong 1990-2025)
72
Table: Population By Age Group % (Hong Kong 1990-2025)
73
Methodology
75
Industry Forecast Methodology
75
Sector-Specific Methodology
76
Risk/Reward Index Methodology
77
Table: Commercial Banking Risk/Reward Index Indicators
78
Table: Weighting Of Indicators
79

The Hong Kong Commercial Banking Report has been researched at source and features BMI Research'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 Index provides 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 points. These 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.