STOCKWATCH: Wing Hang Bank steady after 2000 results

HONG KONG (AFX-ASIA) - Wing Hang Bank shares were steady after its 2000 results announcement, as the bank's performance came as no surprise to market players, dealers said. Wing Hang Bank reported 2000 net profit at 901.18 mln hkd, compared with 682.92 mln hkd in 1999. At 3:07 pm, Wing Hang Bank was steady at 29.25 hkd on volume of 751,500 shares. The Hang Seng Index was down 87.26 points at14,090.10. "The bank's 2000 net profit was in line with the market consensus of around 900 mln hkd. The bank's earnings growth was mainly attributable to improved margins, and lower funding costs in 2000," said Tony Liu, a banking analyst with DBS Securities. Liu said his own forecast for the bank's 2000 et profit was 881 mln hkd. Funding costs in the local banking sector were lower as loan growth remained sluggish in 2000, and the interbank market was flush with liquidity, Liu said. "Property-related collateral makes up more than 50 pct of the bank's loan book, thus an improvement in margins will help support the bank's earnings," he said. He said loan growth will remain less than 10 pct in 2001, in line with the general economic development in Hong Kong. He said he has a "market-perform" rating on Wing Hang Bank, with a 12-month target price of 34.00 hkd. Wing Hang Bank said non-interest income in 2000 stood at 351 mln hkd from the 337 mln hkd recorded the previous year. Provision for bad debts stood at 367 mln hkd in 2000 from 439 mln hkd in 1999. Non-performing loans stood at 4.0 pct in 2000 from 4.7 pct, the statement said, adding that net interest margins stood at 3.16 pct compared with 2.92 pct. more

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