RETAIL BANKING | Tony Chua, Hong Kong

Hang Seng sees 30% yuan deposit growth

Lender has raised its loans-to-deposit ratio to 58% behind 1.77% first half net interest margin.

Hang Seng Bank expects yuan deposit growth in the second half to surpass the 30 percent recorded in the first six months.

The bullish view comes amid forecasts of yuan appreciation and more investment uses for the currency.

Vice chairman and chief executive Margaret Leung Ko May-yee said the bank will offer yuan insurance in September.

It is also open to pricing a bond or issuing subordinated debt in yuan as it looks to replenish capital for two papers due this year.

Leung said the bank is looking into developing new exchange-traded funds in both Hong Kong and the mainland and listing its two existing ETFs in either Shenzhen or Shanghai. Faced with a slim net interest margin of 1.77 percent in the first half, Hang Seng has raised its loans- to-deposit ratio to 58 percent, from 52 percent at the end of last year.

View the full story in The Standard.

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