Hang Seng Bank net falls

HONG KONG: Hang Seng Bank, Hong Kong's second-largest commercial lender, yesterday posted a sharp fall in second-half 2008 earnings and predicted more challenges ahead in 2009 amid falling exports and shrinking domestic demand.

The bank, controlled by HSBC Holdings of the UK, said net profit for the six months ended Dec 31, 2008 fell to $645 million, down 46 percent from a year earlier period.

Its worse-than-expected performance dragged the price of its shares down 3.16 percent to close at HK$84.25 apiece, in line with the decline in the benchmark index.