Annual Report 年報 Celebrating 105 y e ars of B E A 東 亞 銀 行 周 年 10 5 The Bank of East Asia, Limited 東亞銀行有限公司 10 Des Voeux Road Central, Hong Kong 香港中環德輔道中 10 號 Stock code 股份代號: 23 +852 3608 3608 hkbea.com Annual Rep ort 2 0 2 4 年 報 Welcome to The Bank of East Asia, Limited's website 歡迎瀏覽東亞銀行有限公司網站 財務日誌 公布2024年度全年業績 2025年2月20日 宣布派發2024年度第二次 中期股息(可選擇以股代息) 2025年2月20日 2024年度第二次中期股息 除淨日期 2025年3月5日 暫停辦理股份過戶登記 — 2024年度第二次中期股息 由2025年3月7日 至2025年3月11日 （包括首尾兩天） 2024年度第二次中期股息 記錄日期 2025年3月11日 寄發以股代息通函 及選擇表格 2025年3月19日 寄發2 ...

Group 1 - East Asia Asset Management and East Asia Bank have launched the "East Asia Smart All-Weather Fund" to provide diversified investment options for wealth enhancement [1] - The fund targets a distribution yield of 5.5% to 6%, with the first distribution scheduled for May 14 [1] - The minimum investment amount for the fund is HKD 10,000, and it can be subscribed in USD and RMB equivalents [1] Group 2 - The fund's asset allocation includes 30% to 70% in equities, 30% to 70% in bonds, 0% to 15% in commodities, 0% to 20% in real estate investment trusts, and 0% to 30% in cash [1] - As of February 5, the simulated portfolio distribution was 49.9% in equities, 35.1% in bonds, 9.9% in alternative investments, and 5.1% in cash [2] - The fund's equity holdings consist of 29.1% in US stocks, 13.8% in European stocks, and 7% in Asia-Pacific stocks [2]

Group 1 - The core viewpoint emphasizes the promotion of healthy development of the private economy and the internationalization of the RMB through leveraging Hong Kong's advantages as a financial center [1] - Suggestions include Hong Kong becoming a "super service provider" for domestic tech companies looking to expand internationally [1] - The proposal highlights the need for enhanced cloud computing capabilities and regulatory improvements for AI in the financial sector [1] - Recommendations for advancing the offshore RMB hub in Hong Kong include promoting RMB international settlement and expanding investment channels [1] - Support for innovative financial development in Qianhai is suggested, including allowing "dual-headquarters" enterprises to freely allocate funds within certain limits [1] Group 2 - East Asia Bank plans to increase support for private enterprises, with annual credit support exceeding 50 billion yuan [2] - The bank aims to raise the proportion of credit to private enterprises from 30% to around 50% [2] - The introduction of transaction banking products, particularly in supply chain finance, will provide convenience for private enterprises [2] - Efforts will be made to shorten the financing chain for private enterprises by optimizing loan processes and adjusting interest rates based on risk [2]

Investment Rating - The report maintains an "OUTPERFORM" rating for Bank of East Asia [2] Core Views - The bank's revenue, pre-provision operating profit, and net profit attributable to equity holders increased by +1.1%, +0.3%, and +11.9% respectively in 2024 [3][14] - The bank's dividend per share (DPS) rose by 27.8% year-on-year from HKD 0.54 to HKD 0.69 [3][14] - The net interest margin (NIM) for 2024 was 2.09%, down by 5 basis points year-on-year but up by 6 basis points compared to the first half of 2024 [5][16] - The overall impaired loan ratio increased to 2.72%, up by 3 basis points year-on-year [6][16] - Non-interest income increased by 14.9% year-on-year, driven mainly by trading gains and changes in fair value [8][16] Financial Performance Summary - Net interest income for 2024 was HKD 16,529 million, a decrease of 2.0% from the previous year [2][12] - The bank's return on equity (ROE) improved to 4.0%, up by 0.4 percentage points year-on-year [3][14] - The cost-to-income ratio rose to 45.9%, an increase of 0.4 percentage points year-on-year [8][16] - The bank's total loans increased slightly by 0.2% year-on-year, with Hong Kong loans decreasing by 0.8% and mainland loans increasing by 0.5% [5][16] Valuation - The target price for 2025 is set at HKD 11.80, based on a price-to-book (P/B) ratio of 0.30 times [4] - The estimated net profit attributable to equity holders for 2025 is projected to grow by 7.8% year-on-year [4][12]

Investment Rating - The report maintains an "OUTPERFORM" rating for Bank of East Asia [2] Core Views - The bank's revenue, pre-provision operating profit, and net profit attributable to equity holders increased by +1.1%, +0.3%, and +11.9% respectively in 2024 [3][15] - The bank's dividend per share rose by 27.8% year-on-year from HKD 0.54 to HKD 0.69 [3][15] - The net interest margin (NIM) for 2024 was 2.09%, down by 5 basis points year-on-year but up by 6 basis points compared to the first half of 2024 [5][17] - The overall impaired loan ratio increased to 2.72%, up by 3 basis points year-on-year [6][17] - Non-interest income increased by 14.9% year-on-year, primarily driven by trading gains and changes in fair value [8][17] Financial Performance Summary - Net interest income for 2024 was HKD 16,529 million, a decrease of 2.0% from the previous year [4][13] - The bank's return on equity (ROE) increased to 4.0%, up by 0.4 percentage points year-on-year [3][15] - The cost-to-income ratio rose to 45.9%, an increase of 0.4 percentage points year-on-year [8][17] - The bank's total loans increased slightly by 0.2% year-on-year, with Hong Kong loans decreasing by 0.8% and mainland loans increasing by 0.5% [5][17] Valuation - The target price for the bank is set at HKD 11.80, based on a price-to-book (P/B) ratio of 0.30 for 2025 [4] - The estimated net profit attributable to equity holders for 2025 is projected to grow by 7.8% year-on-year [4][13]

Financial Performance - The Bank of East Asia reported a net profit of HKD 4,629 million for the year ended December 31, 2024, an increase of 11.9% compared to HKD 4,136 million in 2023[4]. - Basic and diluted earnings per share rose to HKD 1.52, compared to HKD 1.32 in 2023, marking a growth of 15.2%[4]. - The total comprehensive income for the year was HKD 4,553 million, compared to HKD 4,296 million in 2023, an increase of 6.0%[6]. - The company reported a profit of HKD 4,608 million for the year ended December 31, 2024, compared to HKD 4,118 million in 2023, representing a year-over-year increase of 11.9%[10]. - Operating profit before tax for the year was HKD 5,840 million, an increase from HKD 5,310 million in 2023, reflecting a growth of 9.9%[12]. Income and Expenses - Net interest income decreased slightly to HKD 16,529 million in 2024 from HKD 16,874 million in 2023, reflecting a decrease of 2.0%[3]. - Non-interest income increased to HKD 4,450 million, up 15.0% from HKD 3,872 million in the previous year[3]. - Operating expenses totaled HKD 9,634 million in 2024, up from HKD 9,432 million in 2023, with employee costs rising to HKD 5,616 million from HKD 5,445 million[36]. - The company reported a total tax expense of HKD 1,211 million for 2024, compared to HKD 1,174 million in 2023, with current tax in Hong Kong increasing to HKD 647 million from HKD 419 million[41]. Assets and Liabilities - Total assets increased to HKD 877,759 million, up from HKD 860,361 million in 2023, representing a growth of 2.3%[8]. - Total liabilities increased to HKD 772,020 million in 2024, compared to HKD 740,000 million in 2023[70]. - The company’s total equity increased to HKD 105,739 million as of December 31, 2024, from HKD 106,346 million at the beginning of the year[10]. Customer Loans and Deposits - Customer loans and advances remained stable at HKD 527,829 million, slightly up from HKD 526,984 million in 2023[8]. - Customer deposits increased to HKD 643,093 million, compared to HKD 628,598 million in the previous year, reflecting a growth of 2.3%[8]. - Total customer loans and advances amounted to HKD 532,931 million in 2024, a slight increase from HKD 532,111 million in 2023[44]. Dividends and Share Repurchases - The bank declared a dividend of HKD 0.69 per share, up from HKD 0.54 per share in 2023, indicating a 27.8% increase[4]. - The total dividend declared for the year was HKD 1,815 million, up from HKD 1,434 million in 2023[21]. - The company repurchased approximately 35 million shares at a total cost of HKD 3.43 billion, compared to HKD 3.67 billion for about 36 million shares in 2023[11]. Risk Management - The company is closely monitoring macroeconomic conditions and asset portfolios to manage risks, particularly in light of potential geopolitical tensions and regional conflicts affecting global trade and economic performance[182]. - The company has implemented measures to mitigate credit risk, including enhanced credit controls for high-risk industries and stress testing for capital adequacy and loan loss provisions[182]. - The group actively manages various types of risks, including credit, interest rate, market, liquidity, operational, reputation, strategic, legal, compliance, and technology risks[175]. Strategic Initiatives - The OneBank strategy aims to provide seamless cross-border banking experiences, leveraging the integration of Hong Kong into the Greater Bay Area[104]. - The company aims to diversify its customer base and actively seek new cross-border business growth opportunities, particularly in Beijing, Shanghai, and the Greater Bay Area[126]. - The newly launched digital trading platform, East Asia Investment Connect, received positive feedback from customers, facilitating easier trading of Hong Kong, US, and mainland A-shares[133]. Sustainability and Corporate Governance - The bank aims to achieve net-zero operational emissions by 2030 and net-zero financing emissions by 2050, with specific reduction targets set for high carbon-emitting industries[150]. - The group is committed to sustainable development, considering environmental and social factors in financing and investment decisions[162]. - The company is focusing on environmental, social, and governance (ESG) risks by adopting new climate risk assessment mechanisms and conducting regular climate risk stress tests[183].

Group 1 - Guangzhou Rural Commercial Bank and East Asia Bank have launched the Cross-Border Wealth Management Connect 2.0 (Southbound) business in the Guangdong-Hong Kong-Macao Greater Bay Area, aiming to provide convenient and diverse asset management solutions for clients in the region [1][2] - The Cross-Border Wealth Management Connect business allows investors in the Greater Bay Area to purchase qualified investment products offered by East Asia Bank through a closed-loop funding channel established with Guangzhou Rural Commercial Bank, including 11 types of currency deposits and over 260 qualified funds [1][2] - This collaboration marks a significant milestone in the cooperation between the two financial institutions and represents a new starting point for the interconnection of financial markets in the two regions [2] Group 2 - Guangzhou Rural Commercial Bank, established in 1952 and transformed into a rural commercial bank in 2009, has over 1.3 trillion RMB in total assets as of the end of 2023, ranking among the top 1000 banks globally and top 100 in China [2] - East Asia Bank, founded in 1918, has total assets of 875.2 billion HKD (approximately 112.1 billion USD) as of June 30, 2024, and operates around 120 branches globally, providing comprehensive corporate banking, personal banking, wealth management, and investment services [3]

Group 1 - The core viewpoint of the news is the launch of the Cross-Border Wealth Management Connect 2.0 (Southbound) business by Guangzhou Rural Commercial Bank in collaboration with East Asia Bank, aimed at enhancing asset management solutions for clients in the Greater Bay Area [1][2] - This initiative signifies a significant step in financial services collaboration between the two banks, promoting regional economic integration and facilitating capital flow within the Greater Bay Area [1][2] - The Cross-Border Wealth Management Connect business allows investors in the Greater Bay Area to purchase qualified investment products offered by East Asia Bank through a closed-loop funding channel established with Guangzhou Rural Commercial Bank, including 11 types of currency deposits and over 260 qualified funds [1] Group 2 - Guangzhou Rural Commercial Bank is the first bank outside of East Asia Bank's group to collaborate on the Cross-Border Wealth Management Connect, marking a milestone in financial market connectivity between the two regions [2] - The bank has a strong local presence with a network of 570 branches and subsidiaries across 8 provinces and 1 city, and its total assets exceeded 1.3 trillion RMB by the end of 2023 [2] - East Asia Bank, established in 1918, is a leading financial services group in Hong Kong with total assets of HKD 875.2 billion (approximately USD 112.1 billion) as of June 30, 2024, and a global network of around 120 branches [3]

Financial Performance - For the half year ended 30 June 2024, the profit attributable to owners of the parent was HK$2,111 million, a decrease of 20% from HK$2,636 million for the same period in 2023[5]. - The operating profit before impairment losses for the same period was HK$5,671 million, slightly down from HK$5,688 million in 2023[5]. - Basic earnings per share decreased to HK$0.69 from HK$0.87 in the previous year, reflecting a decline of approximately 20.7%[10]. - Net profit for the first half of 2024 was HK$2,121 million, a decrease of 19.6% compared to HK$2,638 million in the same period of 2023[11]. - Total comprehensive income for the first half of 2024 was HK$1,969 million, slightly up from HK$1,901 million in the first half of 2023[11]. Income and Expenses - The net interest income for the six months ended 30 June 2024 was HK$8,228 million, compared to HK$8,045 million in the same period last year, indicating a growth of 2.3%[9]. - The cost-to-income ratio increased to 45.9% from 44.7% in the previous year, suggesting a rise in operating expenses relative to income[5]. - Operating expenses totaled HK$4,813 million, an increase from HK$4,588 million in the previous year, representing a rise of 4.9%[37]. - Interest income for the six months ended June 30, 2024, was HK$20,379 million, up from HK$18,856 million in the same period of 2023, reflecting a growth of 8.0%[29]. - Interest expense for the six months ended June 30, 2024, was HK$12,151 million, compared to HK$10,811 million in the same period of 2023, an increase of 12.4%[32]. Assets and Liabilities - Total assets as of 30 June 2024 were HK$875,217 million, an increase from HK$872,069 million at the end of June 2023[6]. - Total liabilities as of June 30, 2024, were HK$752,035 million, reflecting a slight increase from previous periods[91]. - Total loans and advances to customers and trade bills increased to HK$536,979 million, up from HK$533,077 million in 2023[6]. - Total cash and cash equivalents at June 30, 2024, were HK$83,764 million, a decrease from HK$98,866 million at the end of June 2023, reflecting a decline of 15.3%[16]. - The bank's cash and balances with banks decreased to HK$39,988 million as of June 30, 2024, down from HK$45,903 million at the end of 2023[39]. Loans and Advances - The impaired loan ratio was 2.62%, slightly up from 2.56% in the previous year, indicating a slight deterioration in asset quality[6]. - Loans and advances to customers reached HK$535,310 million, with impairment allowances of HK$4,917 million, compared to HK$532,111 million and HK$5,127 million respectively at the end of 2023[45]. - The total impaired advances to customers were HK$14,016 million, with specific provisions of HK$3,791 million as of June 30, 2024[59]. - The total gross carrying amount of loans and advances to customers is HK$532,111 million, with impairment allowances of HK$5,127 million[130]. - The credit quality analysis shows that HK$9,796 million is classified as Special Mention, indicating potential credit risk[130]. Dividends and Shareholder Returns - The interim dividend declared was HK$0.31 per share, down from HK$0.36 per share in the previous year, reflecting a decrease of 13.9%[5]. - Proposed dividends increased to HK$817 million from HK$477 million, reflecting a positive outlook for shareholder returns[95]. Capital and Liquidity - Common Equity Tier 1 capital increased to HK$84,351 million as of June 30, 2024, from HK$83,590 million at the end of 2023, reflecting a growth of 0.9%[194]. - Total capital rose to HK$112,224 million as of June 30, 2024, compared to HK$106,362 million at the end of 2023, marking an increase of 5.2%[194]. - The liquidity coverage ratio for the second quarter of 2024 improved to 271.0%, up from 208.9% in the second quarter of 2023[199]. - The leverage ratio remained stable at 10.3% for both June 30, 2024, and December 31, 2023[198]. - The total capital ratio improved to 22.8% as of June 30, 2024, compared to 22.0% at the end of 2023[194]. Impairment and Provisions - Impairment losses on financial instruments increased to HK$2,881 million, compared to HK$2,492 million in the prior year, indicating a rise of 15.6%[37]. - The impairment allowance for loans and advances to customers at June 30, 2024, totaled HK$5,172 million, compared to HK$6,756 million at January 1, 2024[159]. - The total impairment allowances for loans and advances amount to HK$5,127 million, indicating a significant credit risk exposure[133]. - The total impairment allowances for loan commitments were HK$108 million, with HK$93 million for 12-month ECL and HK$15 million for lifetime ECL not credit-impaired[144]. Market and Investment - Investment securities increased to HK$182,899 million, compared to HK$167,270 million, marking a growth of 9.4%[12]. - The fair value reserve for debt instruments showed a net change in fair value of HK$915 million, compared to HK$765 million in the previous year[11]. - The fair value of the Group's investment in AFFIN Bank Berhad was HK$3,287 million, exceeding the carrying value of HK$2,969 million, resulting in no impairment charge[66]. - The total gross carrying amount of debt investment securities measured at amortised cost was HK$22,381 million, with impairment allowances of HK$14 million[147]. Risk Management - The bank's credit risk management includes monitoring significant increases in credit risk based on internal and external ratings[135]. - The 12-month expected credit loss (ECL) for loans and advances is HK$24,047 million, while the lifetime ECL not credit-impaired is HK$14,334 million[133]. - The market value of collateral held against impaired loans and advances to customers was HK$6,259 million as of June 30, 2024[127]. - The total amount of other liabilities, including accrued interest payable, was HK$49,010 million as of June 30, 2024, compared to HK$47,312 million at December 31, 2023[78].

Property Development and Investment - Property development segment saw a decrease in individually impaired loans from HKD 7,581 million to HKD 7,234 million, with special provisions increasing from HKD 2,162 million to HKD 2,282 million[39] - Property investment segment reported a decrease in individually impaired loans from HKD 4,094 million to HKD 3,682 million, with special provisions decreasing from HKD 441 million to HKD 425 million[39] - Total provisions for property development segment decreased from HKD 2,157 million to HKD 1,824 million, while property investment segment provisions increased from HKD 227 million to HKD 443 million[39] Customer Loans and Advances - Total customer loans and advances increased from HKD 532,111 million to HKD 535,310 million, with impaired customer loans decreasing from HKD 14,334 million to HKD 14,016 million[41][42] - Hong Kong region's customer loans and advances decreased from HKD 251,929 million to HKD 240,053 million, with impaired loans increasing from HKD 4,863 million to HKD 4,930 million[41][42] - Mainland China region's customer loans and advances increased from HKD 174,954 million to HKD 189,028 million, with impaired loans decreasing from HKD 8,567 million to HKD 8,209 million[41][42] - The total gross carrying amount of loans and advances was HKD 535,310 million, with a total impairment allowance of HKD 4,917 million as of 30/6/2024[81] - The credit quality analysis revealed that HKD 496,345 million of loans and advances were classified as 'performing' with an expected credit loss (ECL) of HKD 1,673 million, while HKD 14,016 million were classified as 'non-performing' with an ECL of HKD 651 million as of 30/6/2024[81] - The credit risk analysis showed that HKD 9,796 million of loans and advances were classified as 'special mention', HKD 4,391 million as 'substandard', HKD 4,914 million as 'doubtful', and HKD 4,711 million as 'loss' as of 30/6/2024[81] - The collateral market value for impaired loans and advances was HKD 6,259 million as of 30/6/2024[81] - Total customer loans and advances amounted to HKD 532,111 million, with expected credit losses of HKD 24,047 million for non-credit impaired contracts and HKD 14,334 million for credit-impaired contracts[82] - The impairment provision for customer loans and advances was HKD 5,127 million, reducing the carrying amount to HKD 526,984 million[82] - Collateral market value for impaired customer loans and advances was HKD 7,041 million, covering cash, deposits, stocks, bonds, and other tangible assets[82] - The impairment allowance for customer loans and advances decreased from HKD 5,301 million at the beginning of the year to HKD 5,172 million by June 30, 2024, with a significant write-off of HKD 2,892 million during this period[101] - The impairment allowance for customer loans and advances at the end of 2023 was HKD 5,301 million, with a write-off of HKD 6,819 million during the year[102] Investment Securities and Financial Instruments - Investment securities portfolio increased from HKD 167,270 million to HKD 182,899 million, with debt securities increasing from HKD 133,850 million to HKD 148,019 million[43] - Associates and joint ventures investments decreased from HKD 8,384 million to HKD 8,201 million, with an impairment loss of HKD 94 million recognized for a non-listed associate in Mainland China[44] - The recoverable amount of the investment in AFFIN Bank Berhad is HKD 3.287 billion, which is higher than the carrying amount of HKD 2.969 billion, resulting in no additional impairment loss for the period[45] - The discount rate used in the value-in-use calculation for AFFIN Bank Berhad is 11.56%, down from 12.03% as of December 31, 2023[45] - A 50 basis point decrease in the discount rate increases the value-in-use by HKD 225 million, while a 50 basis point increase decreases it by HKD 199 million[46] - A 10% increase in projected cash flows increases the value-in-use by HKD 329 million, while a 10% decrease reduces it by HKD 329 million[46] - The fair value of financial instruments classified as Level 1 (using observable market prices) was HKD 35,524 million as of June 30, 2024, compared to HKD 36,219 million as of December 31, 2023[71] - The fair value of financial instruments classified as Level 2 (using observable inputs) increased to HKD 127,269 million as of June 30, 2024, from HKD 130,596 million as of December 31, 2023[71] - The fair value of financial instruments classified as Level 3 (using unobservable inputs) decreased to HKD 1,377 million as of June 30, 2024, from HKD 1,492 million as of December 31, 2023[71] - The discount rate used in the discounted cash flow model for Level 3 valuations decreased to 10.8% as of June 30, 2024, from 13.4% as of December 31, 2023[72] - The marketability discount for Level 3 valuations remained constant at 20% as of both June 30, 2024, and December 31, 2023[72] - The earnings multiples used in the market comparable approach for Level 3 valuations ranged from 23.45 to 27.89 as of June 30, 2024, compared to 14.38 to 36.36 as of December 31, 2023[72] - The EV/EBITDA multiples used in the market comparable approach for Level 3 valuations ranged from 19.32 to 21.16 as of June 30, 2024, compared to 18.26 to 26.75 as of December 31, 2023[72] - The total fair value of derivative assets decreased to HKD 3,080 million as of June 30, 2024, from HKD 9,056 million as of December 31, 2023[71] - The total fair value of derivative liabilities decreased to HKD 3,037 million as of June 30, 2024, from HKD 4,007 million as of December 31, 2023[71] - The company recorded a net loss of HKD 88 million in the fair value reserve for assets measured at fair value through other comprehensive income during the reporting period[74] - The fair value of financial assets measured at fair value through profit or loss (FVTPL) increased by HKD 42 million, while those measured at fair value through other comprehensive income (FVOCI) increased by HKD 73 million as of 30/6/2024[77] - The fair value sensitivity analysis shows a parallel shift of +/-10% in fair value due to changes in unobservable assumptions, resulting in a HKD 45 million favorable and HKD 45 million unfavorable impact on profit or loss, and HKD 80 million favorable and HKD 80 million unfavorable impact on equity as of 31/12/2023[78] - The fair value of investment securities measured at FVTPL decreased by HKD 10 million, while those measured at FVOCI decreased by HKD 88 million as of 30/6/2024[76] - The total fair value of financial assets measured at FVTPL was HKD 506 million, and those measured at FVOCI was HKD 871 million as of 30/6/2024[76] - The total expected credit loss for debt investment securities measured at amortized cost is HKD 23,743 million, with accrued interest of HKD 237 million[94] - The total expected credit loss for debt investment securities measured at fair value through other comprehensive income is HKD 156,470 million, with accrued interest of HKD 1,543 million[96] - The total expected credit loss for debt investment securities measured at fair value through profit or loss is HKD 152,261 million, with accrued interest of HKD 1,514 million[97] - The total book value of non-trading debt investment securities measured at fair value through profit or loss is HKD 1,879 million as of 30/6/2024[99] - The total book value of trading debt investment securities measured at fair value through profit or loss is HKD 590 million as of 30/6/2024[99] - The total book value of derivative assets is HKD 3,080 million as of 30/6/2024[99] - The total impairment allowance for debt investment securities increased from HKD 882 million at the beginning of the year to HKD 1,037 million by June 30, 2024, driven by a re-measurement gain of HKD 160 million[103] - The impairment allowance for debt investment securities at the end of 2023 was HKD 882 million, with a re-measurement gain of HKD 236 million during the year[104] Fixed Assets and Depreciation - The total fixed assets as of June 30, 2024, amount to HKD 21.296 billion, including investment properties, premises, furniture, fixtures, and equipment[47] - The net book value of fixed assets as of June 30, 2024, is HKD 13.234 billion[47] - The company recorded a revaluation loss of HKD 75 million on investment properties during the period[47] - The total depreciation and impairment of fixed assets as of June 30, 2024, is HKD 8.062 billion[47] - The company added HKD 349 million in fixed assets during the period, including HKD 275 million in premises, furniture, fixtures, and equipment[47] - The company disposed of fixed assets worth HKD 125 million during the period[47] - Total fixed assets increased from HKD 21,037 million as of January 1, 2023, to HKD 21,397 million as of December 31, 2023, reflecting additions and revaluations[48] - Investment properties decreased slightly from HKD 5,166 million to HKD 5,105 million due to revaluation losses and transfers[48] - Accumulated depreciation and impairment of fixed assets increased from HKD 7,561 million as of January 1, 2023, to HKD 7,904 million as of December 31, 2023[48] Liabilities and Deposits - Customer deposits under amortized cost increased from HKD 628,399 million as of December 31, 2023, to HKD 630,109 million as of June 30, 2024[52] - Other liabilities increased from HKD 47,312 million as of December 31, 2023, to HKD 49,010 million as of June 30, 2024, driven by higher accrued interest payable and other items[53] - Financial liabilities designated at fair value through profit or loss decreased significantly from HKD 13,501 million as of December 31, 2023, to HKD 3,831 million as of June 30, 2024[50] - Lease liabilities decreased from HKD 852 million as of December 31, 2023, to HKD 777 million as of June 30, 2024[53] - The fair value of financial liabilities designated at fair value through profit or loss was HKD 34 million lower than their contractual amounts as of June 30, 2024[51] - Contract liabilities under HKFRS 15 decreased from HKD 2.162 billion as of December 31, 2023, to HKD 2.043 billion as of June 30, 2024[53] - The total borrowing capital as of June 30, 2024, was HKD 23,033 million, compared to HKD 15,967 million as of December 31, 2023[54] - The 5-year USD 500 million subordinated notes issued on April 22, 2022, with a coupon rate of 4.875%, had a book value of HKD 3,707 million as of June 30, 2024, down from HKD 3,750 million at the end of 2023[55] - The 10-year USD 600 million subordinated notes issued on May 29, 2020, with a coupon rate of 4%, had a book value of HKD 4,673 million as of June 30, 2024, down from HKD 4,727 million at the end of 2023[55] - The newly issued 10-year USD 650 million subordinated notes on June 27, 2024, with a coupon rate of 6.75%, had a book value of HKD 5,029 million as of June 30, 2024[55] - The 6-year USD 250 million non-preferred loss-absorbing notes issued on July 7, 2022, with a coupon rate of 5.125%, had a book value of HKD 1,872 million as of June 30, 2024, down from HKD 1,899 million at the end of 2023[55] - The 4-year USD 500 million non-preferred loss-absorbing notes issued on March 15, 2023, with a coupon rate of 6.75%, had a book value of HKD 3,889 million as of June 30, 2024, down from HKD 3,942 million at the end of 2023[56] - The newly issued 3-year USD 500 million non-preferred loss-absorbing notes on March 13, 2024, with a coupon rate of 6.625%, had a book value of HKD 3,863 million as of June 30, 2024[56] - The 5-year RMB 1.5 billion subordinated notes issued by the company's subsidiary on April 25, 2019, with a coupon rate of 4.94%, were fully redeemed on April 25, 2024[56] - The company reported no defaults or non-performance on principal and interest payments for its debt securities during the periods ending June 30, 2024, and December 31, 2023[54] - Total customer deposits increased by 0.2% to HKD 6.301 trillion, with savings deposits growing by 6.7% to HKD 79.50 billion[137] Financial Performance and Income - Net interest income for the first half of 2024 increased to HKD 8,228 million, up from HKD 8,045 million in the same period in 2023[58][59] - Non-interest income for the first half of 2024 was HKD 2,256 million, compared to HKD 2,231 million in the first half of 2023[58][59] - Operating expenses for the first half of 2024 rose to HKD 4,813 million, up from HKD 4,588 million in the same period in 2023[58][59] - Profit before tax for the first half of 2024 was HKD 2,730 million, a decrease from HKD 3,323 million in the first half of 2023[58][59] - Total assets as of June 30, 2024, were HKD 875,217 million, compared to HKD 860,361 million as of December 31, 2023[58][59] - Total liabilities as of June 30, 2024, were HKD 765,836 million, up from HKD 752,035 million as of December 31, 2023[58][59] - The Hong Kong business segment's net interest income increased to HKD 684 million in the first half of 2024, up from HKD 456 million in the same period in 2023[58][59] - The China mainland business segment's net interest income decreased to HKD 1,922 million in the first half of 2024, down from HKD 2,061 million in the same period in 2023[58][59] - The international, Macau, and Taiwan business segment's net interest income increased to HKD 1,326 million in the first half of 2024, up from HKD 1,303 million in the same period in 2023[58][59] - The wealth management segment's net interest income decreased to HKD 186 million in the first half of 2024, down from HKD 194 million in the same period in 2023[58][59] - Total assets as of 30/6/2024 amounted to HKD 875,217 million, with cash and bank balances contributing HKD 39,988 million[60] - Customer loans and advances totaled HKD 530,393 million, with HKD 163,714 million due in 1 to 5 years[60] - Total liabilities as of 30/6/2024 were HKD 765,836 million, with customer deposits making up HKD 630,109 million[60] - Total assets as of 31/12/2023 amounted to HKD 860,361 million, with cash and bank balances contributing HKD 45,903 million[61] - Customer loans and advances totaled HKD 526,984 million, with HKD 170,070 million due in 1 to 5 years[61] - Total liabilities as of 31/12/2023 were HKD 752,035 million, with customer deposits making up HKD 628,598 million[61] - The net gap for assets and liabilities as of 30/6/2024 showed a positive gap of HKD 188,346 million for 1 to 5 years[60] - The net gap for assets and liabilities as of 31/12/2023 showed a positive gap of HKD 189,923 million for 1 to 5 years[61] - Net profit attributable to shareholders decreased by 19.9% to HKD 2.111 billion in the first half of 2024 compared to HKD 2.636 billion in the same period of 2023[136] - Basic earnings per share were