---
title: "UBS: The privatization acquisition of Hang Seng Bank by HSBC HOLDINGS has positive significance"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/260543130.md"
description: "UBS report pointed out that HSBC HOLDINGS' privatization of HANG SENG BANK at HKD 155 per share is positive and believes that there will not be significant regulatory obstacles. If the acquisition is successful, HSBC's CET1 net decline will reach 125 basis points, and it is expected to recover to 14%-14.5% through organic growth. Share buybacks will be suspended for the next three quarters, but the dividend payout ratio based on basic earnings per share will remain at 50% for 2025. HANG SENG BANK will continue to maintain its existing operating model, and UBS believes that increasing exposure to high ROTE markets is the right move"
datetime: "2025-10-10T02:35:41.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/260543130.md)
  - [en](https://longbridge.com/en/news/260543130.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/260543130.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/260543130.md) | [繁體中文](https://longbridge.com/zh-HK/news/260543130.md)


# UBS: The privatization acquisition of Hang Seng Bank by HSBC HOLDINGS has positive significance

UBS issued a report stating that HSBC Holdings (00005) proposed to privatize Hang Seng Bank (00011) at HKD 155 per share, believing that HSBC has sufficient reason to believe that there will be no significant regulatory obstacles.

The report indicated that if the acquisition is successful, HSBC's Common Equity Tier 1 (CET1) capital ratio will see a net decline of 125 basis points. The bank expects to restore the CET1 ratio to the target range of 14%-14.5% through organic growth and will suspend share buybacks for the next three quarters, while still maintaining a 50% dividend payout ratio based on underlying earnings per share for 2025. HSBC's CET1 ratio was 14.6% in the second quarter of this year, and HSBC expects this transaction to increase earnings per share but has not provided other financial data related to the transaction.

From the customer's perspective, Hang Seng Bank will continue to maintain its existing operating model. Although UBS expressed some concerns about the provisions for Hang Seng Bank's commercial real estate loans, it believes that taking measures to increase exposure to this high ROTE market while reducing operational complexity within the group is the right move.

(CW)

### Related Stocks

- [HSBC Holdings plc (HSBC.US)](https://longbridge.com/en/quote/HSBC.US.md)
- [HSBC HOLDINGS (00005.HK)](https://longbridge.com/en/quote/00005.HK.md)
- [HANG SENG BANK (00011.HK)](https://longbridge.com/en/quote/00011.HK.md)

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