Wing Hang Bank's 2013 net interest margin hit 1.71%

It slightly beat expectations.

According to CCBIS, Wing Hang Bank (WHB) reported FY13 EPS of HK$7.17/share, above estimate of HK$7.00 and consensus of HK$6.93. 

The earnings beat was driven by better-than- expected credit provisioning and a strong top-line which more than offset higher-than-expected costs.

Here's more from CCBIS:

Pre-provision operating profit of HK$2.2b was largely flat (+1% YoY) as earnings were boosted by property disposal gains (HK$250m) related to the consumer finance business.

Full-year NIM of 1.71% was slightly ahead of forecast driven by higher loan volumes and the retirement of the bank’s costly Tier-2 sub-debt.

Capital ratios were up markedly (CET-1 +120bp HoH to 12.0%) helped by disposal gains which previously did not fully count towards core capital (only 50%).

Credit provisioning of HK$86m was ahead of its HK$125m forecast as the credit normalization continues to be benign; and (4) Deposit growth was strong sequentially (+6.0% HoH) driven by a significant increase in demand and time deposits.

The reality is that fundamentals are secondary as a potential sale to OCBC is now the key driver of value. As announced by WHB in late February, the exclusivity agreement for the two parties to negotiate a deal has been extended to 31 March 2014.