Financial Performance - Total consolidated assets reached HK$860.4 billion (US$110.1 billion) as of December 31, 2023[5] - Profit attributable to owners of the parent increased by 29.6% to HK$11,314 million in 2023 compared to HK$8,730 million in 2022[10] - Total assets decreased by 3.1% to HK$532,484 million in 2023 from HK$549,543 million in 2022[10] - Total customers' deposits and certificates of deposit issued decreased by 2.5% to HK$656,216 million in 2023 from HK$680,755 million in 2022[10] - Basic earnings per share remained stable at HK$1.32 in 2023, while dividends per share decreased by 33.3% to HK$0.54 from HK$0.81 in 2022[10] - The impaired loan ratio increased to 2.69% in 2023 from 2.39% in 2022[10] - The average liquidity coverage ratio for the fourth quarter of 2023 was 201.5%, up from 197.7% in the same period of 2022[10] - The Common Equity Tier 1 capital ratio improved to 17.3% in 2023 from 15.8% in 2022[10] - Total equity in 2023 was HK$108,326 million, showing a slight increase from HK$106,346 million in 2022[13] - Total deposits in 2023 decreased to HK$656,216 million from HK$680,755 million in 2022[13] - Loans and advances to customers in 2023 were HK$532,111 million, down from HK$549,014 million in 2022[13] - Total assets in 2023 were HK$860,361 million, a decrease from HK$882,825 million in 2022[13] - Profit attributable to owners of the parent in 2023 was HK$4,118 million, a 5.5% decline year-on-year[17] - The Bank generated a pre-provision operating profit of HK$11,314 million in 2023, a 29.6% increase from 2022[17] - BEA's profit attributable to owners of the parent for 2023 was HK$4,118 million, with basic earnings per share unchanged at HK$1.32[40] - Net interest income increased by HK$3,366 million (24.9%) to HK$16,874 million, with net interest margin widening by 49 basis points to 2.14%[41] - Net profit attributable to shareholders of the group was HK$4.118 billion, with basic earnings per share remaining flat at HK$1.32[42] - Net interest income increased by 24.9% to HK$16.874 billion, with net interest margin expanding by 49 basis points to 2.14%[42] - Net fee and commission income decreased by 4.1% to HK$2.64 billion, while non-interest income fell by 12.9% to HK$3.872 billion[43][47] - Total operating income increased by 15.5% to HK$20.746 billion, with operating expenses rising by 2.2% to HK$9.432 billion[48][49] - Impairment losses on financial instruments decreased by 7.4% to HK$5.483 billion, with the impaired loan ratio rising to 2.69% at the end of 2023[49] - Gross advances to customers decreased by 3.1% to HK$532.111 billion, while total deposits from customers fell by 3.0% to HK$628.598 billion[51] - The loan-to-deposit ratio stood at 81.1% at the end of December 2023, compared to 80.6% at the end of 2022[51][54] - The Group repurchased 35,940,800 shares for a total consideration of HK$366 million and announced a new budget of HK$500 million for the continuation of the share buyback program[52][54] - Total capital ratio, tier 1 capital ratio, and common equity tier 1 capital ratio remained solid at 22.0%, 19.4%, and 17.3%, respectively[53] - The estimated average liquidity coverage ratio for the period ended 31st December 2023 was 201.5%, well above the statutory minimum of 100%[53] - The Bank of East Asia's Hong Kong operations saw a 9.9% increase in profit before tax to HK$3,463 million in 2023[65] - Net interest income rose by 41.1%, contributing to a 38.9% increase in pre-provision operating profit[65] - The net interest margin (NIM) expanded by 62 basis points due to higher interbank interest rates[65] - Fee income was impacted by reduced customer investment activity but offset by higher income from private banking product sales and bancassurance[65] - Hong Kong operations' pre-tax profit increased by 9.9% to HK$3.463 billion, driven by a 41.1% rise in net interest income and a 62 basis point expansion in net interest margin[68] - Retail banking net profit surged 44.6% year-on-year, with net interest income up 41.1% and retail deposits growing 4.5%[70] - Annualized new premiums from bancassurance rose 80.9%, partially offsetting a 4.1% decline in net fee and commission income[71] - Retail cross-border customer base grew 37% year-on-year and 75% from pre-pandemic levels, driven by initiatives targeting the Greater Bay Area[71] - Hong Kong operations' impairment losses reached HK$3.949 billion due to additional provisions for Mainland property developers' liquidity issues[70] - Operating expenses grew only 2.1% despite technology investments, as digital transformation initiatives improved efficiency[70] - Wholesale banking operating income increased 1.4% year-on-year, with non-interest income up 2.9% driven by syndicated loan fees[75] - Customer loan balance in Hong Kong declined slightly due to proactive de-risking measures, while deposits were closely managed to optimize funding costs[70] - Mortgage lending and credit card spending drove a 3.7% increase in retail customer loan balance[70] - BEA's green lending in the wholesale banking portfolio increased from 9.5% to 12.2% in 2023[78] - Private Banking non-interest income increased by 14.5% year-on-year, with overall operating income rising by 6.5%[78] - The number of Private Banking relationship managers increased by 11.5% compared to December 2022, driving double-digit growth in new client intake[78] - BEA China's pre-provision operating profit grew by 13.3% to HK$1,742 million, with impairment losses on financial instruments falling by 20.6% to HK$1,657 million[80] - BEA China's net interest income rose by 2% to HK$4,072 million, with NIM expanding by 22 basis points to 2.07%[81] - Non-interest income from the affluent segment increased by 26.02%, driven by a 19% rise in bancassurance income and a 69.53% increase in treasury sales[89] - BEA China's wholesale banking operating income rose by 4.9%, with non-interest income growing by 17.7%[88] - BEA China's personal banking operating income grew by 9% year-on-year, primarily driven by a 25.8% increase in internet lending and auto finance portfolio[89] - BEA China's controllable operating expenses fell by 3.3% on a constant currency basis, excluding platform fees and one-off write-backs[89] - BEA China's GSF portfolio accounted for 15.1% of the total wholesale banking segment at year-end[88] - Overseas, Macau, and Taiwan operations' pre-provision operating profit (PPOP) increased by 25.6% year-on-year to HK$2,076 million due to widened NIM[91] - Net profit after tax surged by 50.5% to HK$1,588 million, driven by ECL write-backs and model changes[92] - Cost-to-income ratio improved to 26.9% from 29.9% in 2022, supported by strong revenue growth[92][93][97] - Non-real estate-related loans accounted for 78% of the wholesale banking loan portfolio, up from 73% in the previous year[95] - Wholesale banking operating income grew by 4.9% year-on-year, with non-interest income increasing by 17.7%[95] - Personal banking operating income rose by 9% year-on-year, driven by a 25.8% growth in internet and auto financing portfolios[95] - High-net-worth client non-interest income increased by 26.02%, with wealth product sales up by 69.53%[95] - Assets under management and advisory stood at US$7 billion as of December 31, 2023[102] - Managed and advisory assets reached $7 billion as of December 31, 2023[106] Business Operations and Strategy - The Bank operates one of the largest retail networks in Hong Kong and has outlets in 38 cities across Mainland China[6][7] - The Bank employs over 8,000 employees worldwide and maintains around 130 outlets globally[7] - BEA launched a new regional headquarters in the Qianhai Shenzhen-Hong Kong Cooperation Zone to enhance GBA services[22] - The Bank refreshed its brand in December 2023, focusing on a more dynamic and customer-centric approach[24] - BEA aims to achieve net zero emissions in its operations by 2030 and in its financed activities by 2050[24] - The Bank has been recognized as one of the top performers in the GBA sustainability index[24] - BEA opened its landmark BEA Tower in Qianhai on January 12, 2024, as a strategic hub for the Greater Bay Area[26] - The bank aims to achieve operational net-zero emissions by 2030 and business activity net-zero emissions by 2050, becoming the first Chinese bank to join the Net-Zero Banking Alliance[27] - BEA upgraded its mobile platform in 2023, offering a streamlined, personalized view of daily banking and investment holdings, with new features to be rolled out in 2024[32] - The bank plans to strengthen wealth management services and cross-boundary services following the opening of BEA Tower in Qianhai[34] - BEA's core profits improved due to a widened net interest margin and efforts to develop new revenue streams and enhance operational efficiency[38] - The bank's return on average assets remained stable at 0.4%, while return on average equity decreased by 0.1 percentage point to 3.6%[40] - BEA's transformation journey focuses on becoming a high-efficiency, high-asset-utilization, and digitally-led bank[26] - The bank's Guangzhou service center has significantly reduced processing times for multiple services and improved service quality and cost efficiency[26] - The bank upgraded its mobile banking and investment trading infrastructure in 2023, enhancing functionality and user experience[70] - BEA Union Investment joined Climate Action 100+ and launched the BU Asia Impact Bond Fund in June 2023[103] - Joined "Climate Action 100+" as a participating investor, aligning with global efforts to reduce greenhouse gas emissions[107] - Launched the East Asia Positive Impact Bond Fund in June 2023 to focus on sustainable investments[107] - Expanded recruitment strategy to Mainland China, focusing on digital and specialist business expertise[112] - Introduced a new Group Management Trainee Programme in July 2023 to develop future leaders across Hong Kong, Mainland China, and overseas[113] - Centralized and streamlined operations in 2023 using new technology and data science, improving staff satisfaction and productivity[113] - Employee pulse survey showed a 98% response rate, with most employees feeling proud to work for the company and positive about its transformation journey[113] - Held a bank-wide sports carnival in January 2024 to celebrate the company's 105th anniversary, attracting over 4,000 employees and their families[114] - The Group has formulated a five-year strategic plan to set strategic goals and objectives, evaluating strategic positions according to the changing external environment[151] - The Group has expanded green and sustainable lending to support customers' transition to a low-carbon economy, aligning with its Sustainability Vision and Mission Statements[166] Risk Management and Compliance - The Group is committed to maintaining operational resilience to ensure critical operations continue through disruptions such as pandemics, cyber incidents, technology failures, and natural disasters[122] - The Group is strengthening cybersecurity capabilities, including identification, prevention, detection, and response, to protect critical information assets and systems from external malicious attacks[129] - The Group has established a robust risk governance and management framework to ensure effective oversight and accountability for risk management[133] - The Group manages risk on a Group-wide basis within an Enterprise Risk Management (ERM) framework, optimizing the balance between risk and return[134] - The Group's ERM framework promotes risk awareness and facilitates better operational and strategic decision-making, ensuring operations align with stakeholders' risk tolerance[136] - The Board of Directors has ultimate responsibility for risk management, approving risk appetite, policies, procedures, and limits[136] - The Group has adopted the "Three Lines of Defence" risk management structure to clearly define roles and responsibilities for risk management[142] - The Group faces a variety of principal risks that could affect its franchise, operations, and financial health, with specific management strategies in place[144] - The Group is committed to managing and mitigating environmental, social, and governance (ESG) risks, including climate risk, in alignment with its Sustainability Vision and Mission Statements[133] - The Group ensures compliance with all applicable legal and regulatory requirements and promotes a sound corporate culture to incentivize proper staff behavior[127] - The Group has established control limits, delegated lending authorities, and underwriting criteria to manage Credit Risk, with internal rating structures and recovery procedures in place[145] - The Group conducts cash-flow analysis to monitor funding needs and has a contingency funding plan to address Liquidity Risk[145] - The Group has implemented a three-line defense risk management framework, with the first line being risk owners, the second line being risk monitors, and the third line being the audit department[146][147] - The Group has developed an Operational Resilience Framework to manage critical operations, tolerance for disruption, and severe but plausible scenarios[157] - The Group has allocated additional resources for the management of special assets and credit monitoring to proactively identify and mitigate risks in the loan book[156] - The Group has strengthened cybersecurity awareness through comprehensive training programs and implemented control measures to mitigate Technology Risk[152][158] - The Group has enhanced anti-fraud controls by collaborating with stakeholders and participating in initiatives like the Anti-Deception Alliance[165] - The Group has established comprehensive policies and guidelines to manage Legal and Compliance Risks, with a risk-based approach to complement compliance risk management[152][158] - The Group has systematically identified, assessed, monitored, and mitigated Reputation Risk through specific procedures and guidelines for timely communication with stakeholders[150][158] - The Group continues to enhance data backup arrangements and perform regular testing to address the risk of destructive cyberattacks, as proposed by the HKMA and HKAB[166] - The Group is closely monitoring its portfolios and managing risk exposure, including enhanced credit control on loan exposures and stress testing on capital adequacy and loan-loss allowances[167] - The Group is reducing credit exposure to the Mainland property sector and closely monitoring commercial real estate exposure in Hong Kong, the US, and the UK[167] - The Bank is assessing market trends, managing exposures, and performing hedging scenario analysis and stress-testing to mitigate market and interest rate risks[170] - The Bank is enhancing cybersecurity measures, including engaging external consultants, performing iCAST testing, and improving staff training and incident response management[171] - The Bank is closely monitoring the development of relevant sanction regimes to mitigate compliance risk exposure[170] - The company has implemented multiple measures to enhance cybersecurity, including hiring external consultants, conducting risk-based cyber defense assessments, and improving employee training programs[173] - The company has refined its Green and Sustainable Finance (GSF) framework to manage risks in "brown sectors" and support customers' transition to a low-carbon economy[177] - A second round of climate risk stress testing has been conducted to assess the company's exposure to climate-related risks[177] - The company has introduced quantitative and qualitative risk appetite statements to monitor ESG and climate risk performance[177] - A climate risk heat map framework has been developed to assess and monitor physical and transition risks in vulnerable industries[177] - ESG and climate risk considerations have been integrated into the internal Pillar 2 capital requirement calculations[177] - The company has strengthened its compliance framework, including anti-money laundering (AML) and counter-financing of terrorism (CFT) measures[178] - The company is prepared to meet evolving regulatory demands, including those related to digital environments, customer protection, and personal data protection[178] - The company has established a comprehensive compliance risk management framework, supported by risk and compliance functions across business units[181] - The company regularly reports significant compliance issues, including AML and CFT, to the Risk Committee and Board of Directors[181] Leadership and Governance - Sir David Li Kwok-po stepped down as Chief Executive and was re-designated as Executive Chairman on 1st July, 2019[184] - Sir David Li Kwok-po is the Chairman of BEA China and The Bank of East Asia Charitable Foundation Limited[184] - Professor Arthur Li Kwok-cheung is the Deputy Chairman, Non-executive Director, and a member of the Nomination Committee and the Remuneration Committee[188] - Professor Arthur Li Kwok-cheung has been a Member of the Executive Council of the HKSAR from 2002 to June 2007 and from July 2012 to present[189] - Dr. Allan Wong Chi-yun is the Deputy Chairman, Independent Non-executive Director, Chairman of the Nomination Committee, and a member of the Audit Committee, the Remuneration Committee, and the Risk Committee[191] - Dr. Allan Wong Chi-yun is the Chairman and Group Chief Executive Officer of VTech Holdings Limited (listed in Hong Kong)[192] - Dr. Allan Wong Chi-yun holds a Bachelor of Science degree in electrical engineering from the University of Hong Kong and a Master of Science degree in electrical and computer engineering from the University of Wisconsin[192] - Mr. Aubrey LI Kwok-sing holds an ScB in Civil Engineering from Brown University and an MBA from Columbia University, with extensive experience in investment banking, merchant banking, and capital markets[197] - Mr. Aubrey LI Kwok-sing serves as an Independent Non-executive Director for Café de Coral Holdings Limited, Kowloon Development Co. Ltd,

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表 示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 The Bank of East Asia, Limited 東亞銀行有限公司 （1918年在香港註冊成立之有限公司） （股份代號：23） 2023年度業績公告 業績摘要 本行董事會欣然宣布本集團截至2023年12月31日止年度已審核的業績（附註1(a)）。此財務報告已由本行之審核 委員會作出審閱，與列載於2023年度的財務報告所採納的會計政策及方法一致。 綜合收益表 截至2023年12月31日止年度 | --- | --- | --- | --- | |------------------------------------------------------|-------|-----------------|--------------| | | | 2023 | 2022 | | | 附註 | 港幣百萬元 | 港幣百萬元 | | | | | | | 利息收入 | 4 | 39,685 | 24,8 ...

姿 BEA東亞銀行 Stock Code 股份代誌 : 23) (Stock Code 股份代號 : 23) Interim Report 2023中期報告 Contents 目錄 | --- | --- | --- | --- | |---------------------------------------------------------------|-------|--------------------------------|-------| | | | | | | | | | | | Financial Highlights | 1 | 財務摘要 | 99 | | Corporate Information | 2 | 公司資料 | 100 | | Interim Results | 3 | 中期業績 | 101 | | Consolidated Income Statement | 3 | 綜合收益表 | 101 | | Consolidated Statement of Comprehensive Income | 5 | 綜合全面收益表 | 103 | | Consolidated S ...

Financial Performance - Net interest income increased to HKD 8,045 million from HKD 5,830 million, a growth of 38%[1] - Service fee and commission income rose to HKD 1,807 million, up 3.2% from HKD 1,751 million[1] - Trading profit net increased to HKD 645 million, a 46.3% rise from HKD 441 million[1] - Total operating income grew to HKD 10,276 million, up 26.6% from HKD 8,118 million[1] - Profit before tax surged to HKD 3,323 million, an 84.4% increase from HKD 1,802 million[1] - Net profit for the period rose to HKD 2,638 million, a 74.7% increase from HKD 1,510 million[1] - Basic earnings per share increased to HKD 0.87 from HKD 0.39, a 123% rise[1] - Net profit attributable to shareholders for the first half of 2023 was HKD 2.337 billion, compared to HKD 1.090 billion in the same period last year, representing a significant increase[8] - Basic earnings per share for the first half of 2023 were HKD 0.87, calculated based on a weighted average of 2.677 billion shares, compared to HKD 0.39 in the same period last year[8] - Net profit attributable to shareholders increased by 75.8% to HKD 2.636 billion in the first half of 2023, compared to HKD 1.499 billion in the same period last year[150] - Net interest income rose by 38.0% to HKD 8.045 billion, driven by higher interest rates and a widened net interest margin from 1.42% to 2.03%[150] - Total operating income increased by 26.6% to HKD 10.276 billion, with a cost-to-income ratio improving by 9.6 percentage points to 44.7%[152] - Hong Kong business pre-tax profit surged by 177.2% in H1 2023, driven by a 68.4% increase in net interest income and a 76 basis points expansion in net interest margin[158] - Retail banking net interest income rose by 117.1%, with retail deposits increasing by 5.2% and customer loans growing by 2.0% compared to December 2022[161] - Wholesale banking saw a 5.8% rise in pre-provision operating profit, with net interest income growing by 2.0% and non-interest income increasing by 15.7%[162] - East China's net profit increased from HKD 2 million to HKD 136 million year-on-year, driven by economic recovery and policy support[165] - Net interest income in East China rose by 5.6% year-on-year to HKD 2.057 billion, with net interest margin increasing by 28 basis points to 2.07%[165] - Non-interest income in East China grew by 18.5% year-on-year to HKD 590 million, driven by wholesale and personal banking[165] - Overseas business saw a 48.2% year-on-year increase in pre-provision operating profit to HKD 1.036 billion, despite economic challenges[168] Assets and Liabilities - Total assets decreased to HKD 872,069 million from HKD 882,825 million, a 1.2% decline[3] - Customer loans and advances decreased to HKD 526,235 million from HKD 542,394 million, a 3% drop[3] - Total liabilities decreased to HKD 764,750 million from HKD 776,479 million, a 1.5% decline[3] - Total equity as of June 30, 2023, was HKD 107,319 million, compared to HKD 106,346 million at the beginning of the year[4] - Cash and cash equivalents decreased by HKD 11,545 million to HKD 98,866 million as of June 30, 2023[6] - Total assets for the Hong Kong business stood at HKD 548,422 million as of June 30, 2023[66] - Total liabilities for the Hong Kong business amounted to HKD 484,930 million as of June 30, 2023[66] - The company's total assets across all segments reached HKD 872,069 million as of June 30, 2023[66] - Total liabilities across all segments were HKD 764,750 million as of June 30, 2023[66] - Total assets amounted to HKD 882.825 billion, with cash and bank balances at HKD 54.579 billion[69] - Customer loans and advances totaled HKD 542.394 billion, with HKD 202.555 billion due in over 1 to 5 years[69] - Investment securities stood at HKD 147.007 billion, with HKD 64.709 billion due in over 1 to 5 years[69] - Total liabilities were HKD 776.479 billion, with customer deposits at HKD 648.093 billion[69] - Total assets decreased slightly by 1.2% to HKD 872.069 billion, while customer loans decreased by 3.2% to HKD 531.617 billion[153] - Customer deposits decreased by 3.5% to HKD 625.722 billion, with current and savings accounts declining by 19.0% and 10.5%, respectively[153] Loans and Advances - Customer loans and advances decreased to HKD 526,235 million from HKD 542,394 million, a 3% drop[3] - Total customer loans and advances decreased to HKD 531,617 million as of 30/6/2023 from HKD 549,014 million as of 31/12/2022, with a reduction in impairment allowances from HKD 6,620 million to HKD 5,382 million[35] - Loans used in Hong Kong totaled HKD 259,109 million as of 30/6/2023, with 78.41% being secured, compared to HKD 261,051 million and 78.07% secured as of 31/12/2022[37] - Loans used in mainland China decreased to HKD 157,955 million as of 30/6/2023 from HKD 173,525 million as of 31/12/2022, with secured loans dropping from 24.37% to 23.08%[39] - Loans used outside Hong Kong and mainland China totaled HKD 109,446 million as of 30/6/2023, with 51.34% being secured, compared to HKD 109,328 million and 53.16% secured as of 31/12/2022[40] - Property development loans in Hong Kong decreased to HKD 34,436 million as of 30/6/2023 from HKD 36,872 million as of 31/12/2022, with secured loans dropping from 59.19% to 57.57%[37] - Property investment loans in Hong Kong remained stable at HKD 51,411 million as of 30/6/2023 compared to HKD 52,366 million as of 31/12/2022, with secured loans slightly decreasing from 92.57% to 91.75%[37] - Financial enterprise loans in Hong Kong decreased to HKD 14,402 million as of 30/6/2023 from HKD 14,892 million as of 31/12/2022, with secured loans dropping from 67.56% to 62.49%[37] - Impaired loans in property development decreased to HKD 6,494 million from HKD 8,114 million, with special provisions at HKD 1,653 million and overall provisions at HKD 300 million[41] - Impaired loans in property investment increased to HKD 5,214 million from HKD 3,325 million, with special provisions at HKD 1,193 million and overall provisions at HKD 103 million[41] - Total customer advances in Hong Kong amounted to HKD 263,013 million, with impaired advances at HKD 3,863 million and special provisions at HKD 1,173 million[44] - Total customer advances in Mainland China amounted to HKD 175,262 million, with impaired advances at HKD 9,260 million and special provisions at HKD 2,509 million[44] - Total investment securities measured at amortized cost amounted to HKD 13,963 million, with impairment provisions of HKD 556 million[46] - Investment securities measured at fair value through other comprehensive income totaled HKD 141,062 million[46] - The fair value of equity securities designated at fair value through other comprehensive income was HKD 892 million, with dividend income of HKD 17 million[48] - The company's investment in AFFIN Bank Berhad had a recoverable amount of HKD 3,602 million, with no additional impairment loss recognized[49] - The discount rate sensitivity analysis shows that a decrease of 50 basis points increases the value by HKD 240 million to HKD 3,842 million, while an increase of 50 basis points decreases the value by HKD 215 million to HKD 3,387 million[51] - A 10% increase in projected cash flow increases the value by HKD 360 million to HKD 3,962 million, while a 10% decrease reduces the value by HKD 360 million to HKD 3,242 million[51] - The long-term growth rate sensitivity analysis indicates that a 50 basis points increase raises the value by HKD 28 million to HKD 3,630 million, while a 50 basis points decrease lowers the value by HKD 26 million to HKD 3,576 million[51] - The total fixed assets as of June 30, 2023, amounted to HKD 20,990 million, with investment properties at HKD 5,144 million and leasehold improvements at HKD 7,875 million[52] - The net book value of fixed assets as of June 30, 2023, was HKD 13,320 million, with investment properties contributing HKD 5,144 million and leasehold improvements contributing HKD 5,587 million[52] - The company recorded a revaluation loss of HKD 22 million on investment properties during the first half of 2023[52] - The total fixed assets as of December 31, 2022, were HKD 21,037 million, with investment properties at HKD 5,166 million and leasehold improvements at HKD 8,064 million[53] - The net book value of fixed assets as of December 31, 2022, was HKD 13,476 million, with investment properties contributing HKD 5,166 million and leasehold improvements contributing HKD 5,775 million[53] - The company recorded a revaluation loss of HKD 179 million on investment properties during 2022[53] - The total depreciation and impairment charges for fixed assets as of June 30, 2023, amounted to HKD 7,670 million[52] - Accrued interest increased to HKD 3,683 million as of 30/6/2023, up from HKD 3,537 million at 31/12/2022[54] - Acceptances and other liabilities rose to HKD 29,259 million as of 30/6/2023, compared to HKD 27,796 million at 31/12/2022[54] - Other items under other assets increased to HKD 10,405 million as of 30/6/2023, up from HKD 8,094 million at 31/12/2022[54] - Total book value of financial liabilities designated at fair value through profit or loss decreased to HKD 22,983 million as of 30/6/2023, down from HKD 24,357 million at 31/12/2022[55] - Accrued interest payable increased to HKD 5,421 million as of 30/6/2023, up from HKD 4,155 million at 31/12/2022[59] - Contract liabilities under HKFRS 15 amounted to HKD 2,321 million as of 30/6/2023, down from HKD 2,476 million at 31/12/2022[59] - Total borrowing capital increased to HKD 15,753 million as of 30/6/2023, up from HKD 11,927 million at 31/12/2022[60] - The fair value of financial liabilities designated at fair value through profit or loss was HKD 294 million lower than the contractual amount at maturity as of 30/6/2023, compared to HKD 428 million lower at 31/12/2022[58] - The company issued USD 500 million subordinated notes with a 6.75% interest rate on 15/3/2023, maturing on 15/3/2027[62] - The company's Hong Kong operations are divided into five reportable segments: Personal Banking, Wholesale Banking, Treasury Markets, Wealth Management, and Other Businesses[64] - Hong Kong business reported a net interest income of HKD 4,614 million and non-interest income of HKD 1,554 million for the first half of 2023[66] - Mainland business contributed HKD 2,648 million in operating income and HKD 976 million in operating profit before impairment losses for the first half of 2023[66] - International business recorded HKD 1,406 million in operating income and HKD 1,013 million in operating profit before impairment losses for the first half of 2023[66] - Total assets for the Hong Kong business stood at HKD 548,422 million as of June 30, 2023[66] - Total liabilities for the Hong Kong business amounted to HKD 484,930 million as of June 30, 2023[66] - The company's total assets across all segments reached HKD 872,069 million as of June 30, 2023[66] - Total liabilities across all segments were HKD 764,750 million as of June 30, 2023[66] - The company reported a total operating income of HKD 10,276 million for the first half of 2023[66] - Total operating expenses for the first half of 2023 were HKD 4,588 million[66] - The company's profit before tax for the first half of 2023 was HKD 3,323 million[66] - Net interest income for Personal Banking reached HKD 1,221 million, while non-interest income was HKD 676 million[67] - Wholesale Banking reported net interest income of HKD 1,393 million and non-interest income of HKD 327 million[67] - Total operating income for the Hong Kong business was HKD 4,485 million, with operating expenses of HKD 2,537 million[67] - The Mainland business recorded a net interest income of HKD 1,948 million and non-interest income of HKD 498 million[67] - Total assets for the Hong Kong business amounted to HKD 549,134 million, with total liabilities of HKD 487,111 million[67] - Customer loans and advances totaled HKD 526,235 million, with HKD 188,653 million due in more than 1 year to 5 years[68] - Investment securities amounted to HKD 157,887 million, with HKD 61,561 million due in more than 1 year to 5 years[68] - Total customer deposits reached HKD 625,722 million, with HKD 442,517 million in fixed and notice deposits[68] - The company's total assets stood at HKD 872,069 million, while total liabilities were HKD 764,750 million[68] - The net gap between assets and liabilities was HKD 211,487 million for the period of more than 1 year to 5 years[68] - Total assets amounted to HKD 882.825 billion, with cash and bank balances at HKD 54.579 billion[69] - Customer loans and advances totaled HKD 542.394 billion, with HKD 202.555 billion due in over 1 to 5 years[69] - Investment securities stood at HKD 147.007 billion, with HKD 64.709 billion due in over 1 to 5 years[69] - Total liabilities were HKD 776.479 billion, with customer deposits at HKD 648.093 billion[69] - Deferred tax assets decreased to HKD 1.390 billion as of June 30, 2023, from HKD 1.623 billion at the end of 2022[70][71] - Retained earnings increased to HKD 34.982 billion as of June 30, 2023, compared to HKD 33.365 billion at the end of 2022[72] - Regulatory reserves restricted the company's distributable reserves to HKD 2.071 billion as of June 30, 2023, up from HKD 1.742 billion at the end of 2022[73] - Additional Tier 1 capital instruments remained stable at HKD 10.090 billion as of June 30, 2023[74] - Issued USD 650 million (equivalent to HKD 5.021 billion after deducting issuance costs) of Additional Tier 1 Capital Instruments with a 5.825% annual interest rate until the first call date on October 21, 2025[75] - Cash and cash equivalents decreased to HKD 98.866 billion as of June 30, 2023, compared to HKD 120.146 billion as of June 30, 2022[77] - Cash and balances at banks with original maturities of 3 months or less decreased to HKD 33.974 billion as of June 30, 2023, from HKD 44.365 billion as of June 30, 2022[77] - Deposits and loans at banks with original maturities of 3 months or less decreased to HKD 57.940 billion as of June 30, 2023, from HKD 65.084 billion as of June 30, 2022[77] - Treasury bills with original maturities of 3 months or less decreased to HKD 4.930 billion as of June 30, 2023, from HKD 10.088 billion as of June

Financial Performance - Total consolidated assets reached HK$882.8 billion (US$113.1 billion) as of December 31, 2022[5]. - Operating profit before impairment losses increased by 25.4% to HK$8,730 million in 2022 from HK$6,962 million in 2021[6]. - Profit attributable to owners of the parent decreased by 17.3% to HK$4,359 million in 2022 compared to HK$5,270 million in 2021[6]. - Total loans and advances to customers and trade bills amounted to HK$549,543 million, a decline of 1.8% from HK$559,580 million in 2021[6]. - Total assets decreased by 2.7% to HK$882,825 million from HK$907,470 million in 2021[6]. - Total customers' deposits and certificates of deposit issued fell by 2.4% to HK$680,755 million from HK$697,832 million in 2021[6]. - Basic earnings per share decreased by 13.7% to HK$1.32 from HK$1.53 in 2021[6]. - Dividends increased by 15.7% to HK$0.81 per share from HK$0.70 per share in 2021[6]. - Return on average assets was 0.4%, down from 0.5% in 2021[6]. - Common Equity Tier 1 capital ratio improved to 19.7% in the fourth quarter from 18.2% in the previous year[6]. - Total equity in 2022 was HK$106,346 million, a decrease from HK$116,050 million in 2021[9]. - Group net interest income increased by 20.8% year-on-year, contributing to a pre-provision operating profit growth of 25.4% in 2022[12]. - Profit attributable to shareholders fell by 17.3% year-on-year, primarily due to increased provisions for loans in the Mainland property sector[13]. - Total deposits reached HK$680,755 million in 2022, compared to HK$697,832 million in 2021[9]. - Loans and advances to customers amounted to HK$549,014 million in 2022, slightly up from HK$548,808 million in 2021[9]. - The loan-to-deposit ratio increased to 81% in 2022 from 79% in previous years[9]. Digital Transformation and Customer Experience - The company launched the One Bank initiative in 2022 to enhance digital transformation and customer experience[21]. - The bank's digital transformation journey continues, with initiatives like the One Bank initiative launched in 2022 to improve service efficiency and customer experience[27]. - The bank has been actively investing in people and technology to enhance its service capabilities across Hong Kong and Mainland China[28]. - The uptake of BEA's new digital account, BEA GOAL, exceeded expectations, successfully attracting a new generation of customers[54]. - BEA plans to launch additional digital services covering investment trading in 2023 to enhance customer experience[70]. - A new digital investment trading platform is set to launch in 2023, enhancing services for retail customers[78]. Sustainability and ESG Initiatives - The company aims to achieve net zero in its operations by 2030 and in its business activities by 2050[24]. - The bank is committed to achieving net-zero operational emissions by 2030 and net-zero business activity emissions by 2050, implementing multiple roadmaps to address climate change[27]. - The proportion of green lending and bond investments in BEA's total portfolio increased by 6.5 percentage points year-on-year, reflecting the bank's commitment to sustainable finance[66]. - Green and sustainability-linked loans accounted for 17.9% of BEA's total loan portfolio as of the end of 2022, with respective loan balances increasing by 117.6% from the previous year[84]. - The bank's commitment to sustainability includes a roadmap for reducing operational emissions and a target to reduce paper consumption by 70% over three years[111]. - The Bank of East Asia aims to achieve net-zero financing emissions by 2050 and has set a roadmap for operational carbon emissions to reach net-zero by 2030[117]. - The Group launched the Green and Sustainable Finance Framework to incorporate sustainable practices into business initiatives, enhancing the ESG risk-rating mechanism for systematic assessment of customers' ESG performance[159]. Risk Management - The Group has established a comprehensive Enterprise Risk Management (ERM) framework to optimize the balance between different types of risk and return[129]. - The Group's risk management structure includes a "Three Lines of Defence" model to clearly define roles and responsibilities in risk management[141]. - The Group has implemented control limits and monitoring processes for credit risk, interest rate risk, market risk, liquidity risk, and operational risk[144]. - The Group recognizes the importance of sustainability and incorporates environmental and social considerations into financing and investment decisions[132]. - The Group is enhancing its cybersecurity capabilities to protect critical information assets from evolving cyber threats[128]. - The Group's risk governance structure includes a Risk Committee that oversees the formulation of the Group's risk appetite and ensures alignment with policies and procedures[134]. - The Group actively promotes a strong risk culture and awareness throughout the organization to facilitate better operational and strategic decision-making[131]. Leadership and Governance - Mr. Adrian David Li Man-kiu was appointed Co-Chief Executive in July 2019, focusing on the overall management and control of the Bank Group, particularly in Hong Kong[188]. - The leadership team includes members with prestigious academic backgrounds, such as degrees from Stanford University and Columbia University, which may contribute to strategic decision-making[191]. - The Bank of East Asia is focused on risk management, with a dedicated Risk Committee to oversee potential challenges in the financial landscape[191]. - The company has a diverse board composition, with members holding various roles in other significant organizations, enhancing its strategic insights[191]. - The organization is positioned to leverage its extensive experience and governance framework to navigate future market opportunities and challenges[190]. Market Outlook and Economic Conditions - The current high interest rate environment is expected to persist throughout 2023, with a focus on responsible lending and proactive risk monitoring[28]. - The reopening of Hong Kong and Mainland China is anticipated to boost the economy, with expectations of capital inflow and a rebound in tourism and trade[28]. - Retail investors are returning to the market in 2023, which is expected to positively impact the sale of investment products[28]. - The forecast for Hong Kong's GDP growth in 2023 has been upgraded to around 5.0%, with inflation expected at 1.9%[18]. - Mainland China's GDP growth is projected to reach 5.7% in 2023, with inflation remaining moderate at around 2.2%[18]. - The global economy is facing significant uncertainties due to the COVID-19 pandemic and the Russia-Ukraine conflict, with a potential risk of recession looming[161]. - Inflation remains high, particularly in the United States and European economies, prompting rapid monetary tightening not seen in decades[161].

Profitability and Earnings - Operating profit before impairment losses for the half year ended 30 June 2022 was HK$3,712 million, compared to HK$3,768 million in the same period in 2021[3] - Profit attributable to owners of the parent decreased to HK$1,499 million in H1 2022 from HK$2,671 million in H1 2021[3] - Basic earnings per share dropped to HK$0.39 in H1 2022 from HK$0.78 in H1 2021[3] - Net profit for the 6 months ended 30/6/2022 was HK$1,510 million, a decrease of 44% compared to HK$2,697 million in the same period in 2021[10] - Total comprehensive income for the 6 months ended 30/6/2022 was a loss of HK$1,561 million, compared to a gain of HK$2,446 million in the same period in 2021[10] - Basic earnings per share for H1 2022 was HK$1,090 million, down from HK$2,266 million in H1 2021, reflecting lower profitability[17] - Interim dividend declared for H1 2022 was HK$0.16 per share, totaling HK$430 million, compared to HK$0.35 per share and HK$1,022 million in H1 2021[20] - Net insurance profit decreased significantly to HK$14 million in H1 2022 from HK$352 million in H1 2021[35] - Net insurance premium dropped to HK$500 million in H1 2022 from HK$3,550 million in H1 2021[35] - Profit before taxation for Hong Kong operations was HK$545 million, with Personal Banking contributing HK$966 million and Wholesale Banking contributing HK$379 million[85] Loans and Advances - Total loans and advances to customers and trade bills increased to HK$554,443 million as of 30 June 2022, up from HK$546,577 million at the end of 2021[4] - Loans and advances to customers increased to HK$546,421 million as of 30/6/2022, up from HK$544,437 million as of 31/12/2021[11] - Loans and advances to customers increased to HK$551,372 million as of 30/6/2022 from HK$548,808 million as of 31/12/2021[48] - Gross advances in Hong Kong increased to HK$260,885 million as of 30/6/2022, up from HK$262,209 million at 31/12/2021, with collateral coverage at 77.94%[50] - Total loans for use in Mainland China decreased to HK$180,622 million as of 30/6/2022, down from HK$183,979 million at 31/12/2021, with collateral coverage at 23.46%[52] - Individually impaired loans for property development in Mainland China surged to HK$4,170 million as of 30/6/2022, up from HK$1,009 million at 31/12/2021[55] - Total advances to customers in Hong Kong increased to HK$265,563 million as of 30/6/2022, up from HK$264,285 million at 31/12/2021[58] - Impaired advances to customers in Mainland China rose to HK$7,440 million as of 30/6/2022, up from HK$4,589 million at 31/12/2021[58] - Specific provisions for impaired loans in Mainland China increased to HK$2,861 million as of 30/6/2022, up from HK$2,822 million at 31/12/2021[58] - Collective provisions for impaired loans in Mainland China increased to HK$1,083 million as of 30/6/2022, up from HK$755 million at 31/12/2021[58] - Total advances overdue for over three months in Mainland China increased to HK$2,005 million as of 30/6/2022, up from HK$2,020 million at 31/12/2021[58] - Loans and advances to customers at amortised cost for Grades 1-15 (Pass) had a principal amount of HK$512,778 million, with 12-month ECL of HK$976 million and accrued interest of HK$1,003 million[130] - Loans and advances to customers at amortised cost for Grades 16-17 (Special Mention) had a principal amount of HK$14,059 million, with lifetime ECL not credit-impaired of HK$58 million[130] - Loans and advances to customers at amortised cost for Grade 18 (Substandard) had a principal amount of HK$6,492 million, with lifetime ECL credit-impaired of HK$30 million[130] - Loans and advances to customers at amortised cost for Grade 19 (Doubtful) had a principal amount of HK$1,409 million, with lifetime ECL credit-impaired of HK$53 million[130] - Loans and advances to customers at amortised cost for Grade 20 (Loss) had a principal amount of HK$802 million, with lifetime ECL credit-impaired of HK$18 million[130] - The total gross carrying amount of loans and advances to customers at amortised cost was HK$551,372 million, with total impairment allowances of HK$4,951 million[130] - The market value of collateral held against impaired loans and advances to customers was HK$3,683 million[130] - Impairment allowances for loans and advances to customers increased to HK$5,020 million as of 30/6/2022, up from HK$4,429 million as of 1st January 2022[169] - Write-offs and net remeasurement of impairment allowances for loans and advances to customers amounted to HK$1,220 million as of 30/6/2022[169] - Loans and advances to customers impairment allowances decreased from HK$4,915 million at the beginning of the year to HK$4,429 million at the end of the year, with write-offs amounting to HK$2,397 million[171] Deposits and Liabilities - Total customers' deposits and certificates of deposit issued grew to HK$691,221 million as of 30 June 2022, compared to HK$661,656 million at the end of 2021[4] - Deposits from customers grew to HK$644,564 million as of 30/6/2022, compared to HK$633,505 million as of 31/12/2021[11] - Deposits from customers amounted to HK$644,564 million, including HK$69,500 million in demand deposits and current accounts[89] - Deposits from customers reached HK$633.505 billion, with demand deposits and current accounts accounting for HK$79.657 billion[91] - Total liabilities for the company were HK$801,886 million, including HK$258,970 million repayable on demand[89] - Total liabilities were HK$791.42 billion, with deposits from customers making up HK$633.505 billion of this amount[91] - Total liabilities for Hong Kong operations were HK$503,485 million, with Personal Banking accounting for HK$338,097 million[85] - Financial liabilities designated at fair value through profit or loss decreased to HK$30,171 million at 30th June 2022 from HK$36,877 million at 31st December 2021[68] - The carrying amount of financial liabilities designated at FVTPL was HK$460 million lower than the contractual amount due at maturity[71] - Trading liabilities increased to HK$55,641 million at 30th June 2022 from HK$42,915 million at 31st December 2021[72] - Loan capital increased to HK$12,258 million at 30th June 2022 from HK$6,488 million at 31st December 2021[73] - Loan capital with face value of HK$3,923 million (US$500 million) and carrying amount of HK$3,847 million, issued on 22nd April, 2022, carries a coupon rate of 4.875% p.a. and matures on 22nd April, 2032[74] - Loan capital with face value of HK$1,961 million (US$250 million) and carrying amount of HK$1,967 million, issued on 7th July, 2022, carries a coupon rate of 5.125% p.a. and matures on 7th July, 2028[75] - Loan capital with face value of HK$1,758 million (RMB1,500 million) and carrying amount of HK$1,757 million, issued on 25th April, 2019, carries a coupon rate of 4.94% p.a. and matures on 25th April, 2029[75] - Loan capital with face value of HK$4,707 million (US$600 million) and carrying amount of HK$4,687 million, issued on 29th May, 2020, carries a coupon rate of 4% p.a. and matures on 29th May, 2030[76] - Additional Tier 1 Capital Securities issued in 2019 and 2020 totaled HK$10.09 billion, with face values of US$650 million each[97][98][99] - Contractual amounts of contingent liabilities increased to HK$14,546 million as of 30/6/2022, up from HK$14,005 million as of 31/12/2021[182] - Total commitments rose to HK$293,048 million as of 30/6/2022, compared to HK$264,205 million as of 31/12/2021[182] - Capital commitments outstanding as of 30/6/2022 totaled HK$469 million, up from HK$456 million as of 31/12/2021[185] Impairment Losses and Provisions - The impaired loan ratio increased to 1.58% as of 30 June 2022 from 1.21% at the end of 2021[4] - Impairment losses on financial instruments significantly increased to HK$2,136 million in H1 2022 from HK$581 million in H1 2021[7] - Impairment losses on financial instruments surged to HK$2,136 million in H1 2022 from HK$581 million in H1 2021[41] - Impairment allowances for loans and advances to customers increased to HK$5,020 million as of 30/6/2022, up from HK$4,429 million as of 1st January 2022[169] - Write-offs and net remeasurement of impairment allowances for loans and advances to customers amounted to HK$1,220 million as of 30/6/2022[169] - Loans and advances to customers impairment allowances decreased from HK$4,915 million at the beginning of the year to HK$4,429 million at the end of the year, with write-offs amounting to HK$2,397 million[171] - Debt investment securities impairment allowances increased from HK$331 million at the beginning of the year to HK$484 million by mid-year, with net remeasurement adjustments contributing HK$115 million[173] - Other financial assets impairment allowances rose from HK$252 million at the beginning of the year to HK$398 million by mid-year, driven by a net remeasurement adjustment of HK$142 million[177] - Loan commitments and financial guarantee contracts accounted for HK$315 million of the total impairment allowances for other financial assets by mid-year[177] - The company's impairment allowances for trade bills measured at FVOCI are not recognized in the financial position statement as their carrying amount reflects fair value[179] Capital and Equity - Common Equity Tier 1 capital ratio decreased to 15.7% as of 30 June 2022 from 16.9% at the end of 2021[4] - Total equity attributable to owners of the parent decreased to HK$95,968 million as of 30/6/2022, down from HK$101,778 million as of 31/12/2021[11] - Retained profits decreased to HK$32,530 million as of 30/6/2022, compared to HK$35,385 million as of 1/1/2022[13] - Non-controlling interests decreased to HK$267 million as of 30/6/2022, down from HK$304 million as of 31/12/2021[11] - The company repurchased 247 million shares in April 2022, reducing the total number of ordinary shares to 2,689 million[24] - The company repurchased 247 million shares at a total cost of HK$2.916 billion, deducted from retained profits[95] - Regulatory reserve restricted the distribution of reserves to shareholders by HK$2.327 billion as of 30th June 2022[96] - Total equity of The Bank of East Asia (China) Limited was HK$25,837 million as of the reporting date[198] - Blue Cross (Asia-Pacific) Insurance Limited reported total assets of HK$2,301 million and total equity of HK$651 million as of the reporting date[194] Interest and Fee Income - Net interest income increased to HK$5,830 million in H1 2022 from HK$5,523 million in H1 2021[7] - Net fee and commission income decreased to HK$1,440 million in H1 2022 from HK$1,540 million in H1 2021[7] - Interest income rose to HK$9,658 million in H1 2022, up from HK$8,887 million in H1 2021, driven by higher income from loans, deposits, and investment securities[26] - Fee and commission income decreased to HK$1,751 million in H1 2022 from HK$1,969 million in H1 2021, with notable declines in credit cards and securities brokerage[31] - Interest expense increased to HK$3,828 million in H1 2022 from HK$3,364 million in H1 2021, driven by higher costs on customer deposits and debt securities[28] - Net gain from financial instruments designated at FVTPL increased to HK$289 million in H1 2022 from HK$16 million in H1 2021[34] - Non-interest income for Hong Kong operations totaled HK$1,393 million, with Personal Banking contributing HK$584 million and Wealth Management contributing HK$331 million[85] - Hong Kong operations reported a net interest income of HK$1,130 million and non-interest income of HK$565 million for the 6 months ended 30th June 2021[87] - Mainland China operations recorded a net interest income of HK$1,962 million and non-interest income of HK$450 million for the same period[87] - Overseas operations generated a net interest income of HK$828 million and non-interest income of HK$117 million[87] - Total operating income for Hong Kong operations was HK$4,358 million, while Mainland China operations contributed HK$2,412 million[87] Assets and Investments - Total assets as of 30/6/2022 were HK$908,211 million, a slight increase from HK$907,470 million as of 31/12/2021[11] - Total assets increased to HK$907.47 billion, with significant contributions from loans and advances to customers at HK$544.37 billion[91] - Total assets for Hong Kong operations stood at HK$562,973 million, with Treasury Markets accounting for HK$238,600 million[85] - Total assets for Hong Kong operations stood at HK$556,806 million, with Mainland China operations at HK$262,575 million and overseas operations at HK$118,789 million[87] - Total assets of The Bank of East Asia (China) Limited stood at HK$253,384 million as of the reporting date[198] - Blue Cross (Asia-Pacific) Insurance Limited reported total assets of HK$2,301 million as of the reporting date[194] - Total investment securities increased to HK$150,471 million as of 30/6/2022, up from HK$147,507 million at 31/12/2021[61] - Debt securities measured at FVOCI increased to HK$107,303 million as of 30/6/2022, up from HK$101,968 million at 31/12/2021[61] - The fair value of the Group's investment in AFFIN Bank Berhad was HK$3,891 million, higher than the carrying value of HK$3,375 million, resulting in no impairment charge[63] - The VIU calculation for AFFIN Bank Berhad used a discount rate of 12.08% and a long-term growth rate of 3%[63] - A 50 basis points decrease in the discount rate would increase the VIU by HK$217 million, while a 50 basis points increase would decrease the VIU by HK$194 million[65] - A 10% increase in expected cash flows would increase the VIU by HK$389 million, while a 10% decrease would reduce the VIU by HK$389 million[65] - The net book value of fixed assets at 30th June 2022 was HK$13,543 million, compared to HK$13,844 million at 31st December 2021[66] - Other assets increased to HK$50,989 million at 30th June 2022 from HK$42,523 million at 31st December 2021[67] - Level 1 financial assets measured at fair value totaled HK$25,031 million as of 30/6/2022, compared to HK$26,082 million at 31/12/2021, with a significant portion in investment securities[111] - Level 3 financial assets, which involve significant unobservable inputs, increased to HK$1,643 million as of 30/6/2022, up from HK$1,520 million at 31/12/2021, primarily due to changes in fair value of investment securities[111] - The fair value of investment securities measured at FVOCI increased to HK$129,843 million as of 30/6/2022, up from HK$125,524 million at 31/12/2021, reflecting gains in fair value[111] - The discount rate used in Level 3 valuations decreased to 12.4% as of 30/6/2022, down from 15.3% at 31/12/2021, impacting the fair value of

� BEA東亞銀行 (Stock Code 股份代號：23) Annual Report 2021 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 CONTENTS 目錄 Sustainability 可持續發展 Glossary 詞彙 02 Corporate Profile 本行簡介 03 Financial Highlights 財務摘要 04 Five-Year Financial Summary 5年財務概要 06 Executive Chairman's Statement 執行主席報告書 12 Report of the Co-Chief Executives 聯席行政總裁報告書 Biographical Details of Directors and Senior Management 董事及高層管理人員的個人資料 44 Corporate Information 公司資料 64 List of Outlets 網絡一覽 68 70 Corporate Governance Report 企業管治報告 ...

� BEA東亞銀行 (Stock Code 股份代號 : 23) Interim Report 2021中期報告 Contents 目錄 | --- | --- | --- | --- | |---------------------------------------------------------------|-------|--------------------------------|-------| | | | | | | | | | | | Financial Highlights | 1 | 財務摘要 | 105 | | Corporate Information | 2 | 公司資料 | 106 | | Interim Results | 3 | 中期業績 | 107 | | Consolidated Income Statement | 3 | 綜合收益表 | 107 | | Consolidated Statement of | 5 | 綜合全面收益表 | 109 | | Comprehensive Income Consolidated Statement of Financial ...

Financial Performance - Total consolidated assets of HK$884.4 billion (US$114.1 billion) as of 31st December 2020[6] - Operating profit before impairment losses decreased by 15.4% to HK$8,347 million in 2020 compared to HK$9,864 million in 2019[7] - Profit attributable to owners of the parent increased by 10.8% to HK$3,614 million in 2020 from HK$3,260 million in 2019[7] - Total assets grew by 0.9% to HK$884,420 million in 2020 from HK$865,198 million in 2019[7] - Total customers' deposits and certificates of deposit issued increased by 2.2% to HK$650,054 million in 2020 from HK$647,586 million in 2019[7] - Basic earnings per share rose by 9.0% to HK$0.97 in 2020 from HK$0.89 in 2019[7] - Dividends per share decreased by 13.0% to HK$0.40 in 2020 from HK$0.46 in 2019[7] - Common Equity Tier 1 capital ratio improved to 16.5% in 2020 from 15.6% in 2019[7] - Total capital ratio increased to 21.9% in 2020 from 20.4% in 2019[7] - Total equity increased to HK$113,796 million in 2020, up from HK$109,638 million in 2019[12] - Total deposits grew to HK$650,054 million in 2020, compared to HK$647,586 million in 2019[12] - Loans and advances to customers rose to HK$513,929 million in 2020, up from HK$509,105 million in 2019[12] - Total assets reached HK$884,420 million in 2020, an increase from HK$865,198 million in 2019[12] - Profit attributable to owners of the parent was HK$3,614 million in 2020, compared to HK$3,260 million in 2019[12] - Earnings per share improved to HK$0.97 in 2020, up from HK$0.89 in 2019[12] - Dividends per share decreased to HK$0.40 in 2020, down from HK$0.46 in 2019[12] - BEA's profit attributable to owners of the parent increased by HK$354 million or 10.8% to HK$3,614 million in 2020 compared to 2019[23] - Pre-provision operating profit decreased by HK$1,517 million or 15.4% to HK$8,347 million in 2020[23] - Net charge for impairment losses on financial instruments fell sharply from HK$7,253 million in 2019 to HK$4,674 million in 2020, mainly due to a reduction in impairment losses recorded by Mainland China operations[23] - Net fee and commission income rose by HK$47 million or 1.6% to HK$2,922 million in 2020[23] - Total operating income decreased by 12.4% to HK$17,310 million in 2020[23] - Total operating expenses fell by 9.4% to HK$8,963 million in 2020, mainly due to declines in staff costs and internet platform charges[23] - Cost-to-income ratio for 2020 was 51.8% versus 50.1% in 2019[23] - Net profit attributable to shareholders increased by HKD 354 million or 10.8% to HKD 3,614 million in 2020 compared to HKD 3,260 million in 2019[24] - Impairment losses on financial instruments decreased significantly from HKD 7,253 million in 2019 to HKD 4,674 million in 2020, primarily due to reduced impairment losses in mainland China[24] - Net interest income decreased by HKD 3,016 million or 20.7% to HKD 11,550 million, with net interest margin narrowing from 1.86% to 1.48%[24] - Total customer deposits increased by 2.7% to HKD 589,202 million, with savings deposits growing by HKD 48,160 million or 34.5%[26] - The loan-to-deposit ratio stood at 79.1% at the end of December 2020, compared to 78.6% at the end of 2019[26] - Total capital ratio, Tier 1 capital ratio, and Common Equity Tier 1 capital ratio were 21.9%, 19.4%, and 16.5% respectively as of December 31, 2020[26] - The average liquidity coverage ratio for the quarter ended December 31, 2020 was 183.8%, well above the statutory minimum of 100%[26] - Operating expenses decreased by 9.4% to HKD 8,963 million, primarily due to reduced staff costs and internet platform expenses[24] - The cost-to-income ratio was 51.8% in 2020, compared to 50.1% in 2019[24] - BEA's customer loans in Hong Kong increased by 2.1% to HK$295,768 million, and customer deposits rose by 3.8% to HK$391,071 million by the end of December 2020[36] - Profit before tax for Hong Kong operations declined to HK$3,413 million, with a 23.5% decrease in Net Interest Income (NII) due to significant drops in interbank rates[36] - Non-interest income increased by 19.4%, partially offsetting the decline in NII, driven by successful efforts to grow fees and commissions[36] - Operating income declined by 8.7% year-on-year, with credit costs trending upwards, particularly in the corporate portfolio, though impairment losses did not reach worst-case projections[36] - The Bank's net interest income in Hong Kong decreased by 23.5%, and the net interest margin narrowed by 41 basis points due to the impact of COVID-19[37] - Fee and commission income grew by 19.4%, partially offsetting the decline in net interest income, while overall operating income fell by 8.7% year-on-year[37] - Operating income decreased by 16.7% compared to 2019, primarily due to a decline in net interest income[41] - Operating income rose by 2.3%, led by higher non-interest income, with strong growth in fees from treasury and insurance products[44] - Private Banking's non-interest income increased by 35.5%, offsetting a decline in NII, with overall operating income growing by 2.5% year-on-year[46] - BEA China's NII decreased by 23.2% to HK$4,112 million due to a shrinking NIM in the low interest rate environment[51][54] - BEA China's non-interest income from syndicated loans grew by 74.2% year-on-year[51][54] - BEA China reported a net loss of HK$818 million for 2020, an improvement from 2019[51][54] - Retail wealth management non-interest income increased by 75.9% year-on-year, driven by a significant rise in high-net-worth customers[56] - The Bank's total operating expenses dropped slightly year-on-year, with the cost-to-income ratio edging up from 35.2% in 2019 to 36.7% in 2020[56] - BEA China reduced its cost-to-income ratio to 62.7% in 2020, down by 2.2 percentage points year-on-year[56] - Overseas branches achieved modest loan growth of 3.7% in 2020, despite challenging conditions[56] - The Bank's UK operations delivered positive growth in both loans and pre-provision operating profit in 2020[56] Digital Transformation and Innovation - The company accelerated digital transformation and shifted resources to fee-based services, improving business performance in 2020 despite the pandemic[14] - The company is expanding its ability to generate revenue with less capital, particularly by increasing fee-based income through a broader range of services[20] - The company is streamlining work practices and seeking cost-savings, with immediate cost savings achieved in 2020 and plans for further automation and efficiency improvements over the next three years[20] - BEA plans to invest in new technology and streamline business processes over the next three years[21] - Digital adoption accelerated, with online and mobile financial transactions increasing by 23.1%, and digital investment transactions more than doubling[39] - Digital channel usage accelerated, with financial transactions via online and mobile platforms increasing by 23.1%, and investment transactions via digital channels more than doubling[41] - The Bank's SupremeGold accounts grew by 13.7% in 2020, and a new premium service, SupremeGold Private, was launched in November[39] - The SupremeGold Private service was launched, targeting premium affluent clients with sophisticated financial planning and wealth management solutions[41] - BEA's MPF schemes' total membership grew to 836,000, with AUM rising to HK$31.8 billion, and digital usage increased by 35%[51][53] - BEA Union Investment introduced two fixed maturity funds in 2020, which received overwhelming response from retail investors[59] - BEA Union Investment's wholly-owned subsidiary in Shenzhen launched its first private fund for professional investors in Mainland China in mid-2020[64] - BEA revamped its intranet to feature more timely and in-depth content, promoting core values through staff stories and encouragement from General Managers[62] - BEA implemented a peer review system and linked financial and non-financial performance metrics to the company's shared purpose to enhance performance management[65] Risk Management - Common Equity Tier 1 capital ratio improved to 16.5% in 2020 from 15.6% in 2019[7] - Total capital ratio increased to 21.9% in 2020 from 20.4% in 2019[7] - The Group's non-performing loan ratio increased from 1.22% at the end of 2019 to 1.26% at the end of 2020, with Hong Kong's ratio rising from 0.25% to 0.75% and mainland China's ratio decreasing from 3.80% to 3.10%[24] - The impaired loan ratio dropped by 71 basis points to 3.10% at the end of 2020, compared to the end of 2019[56] - BEA's Risk Committee ensures the Group's risk appetite is reflected in policies and procedures adopted by Senior Management[68] - BEA maintains a robust risk governance framework, with the Board of Directors having ultimate responsibility for effective risk management[68] - BEA's Enterprise Risk Management framework focuses on optimizing the balance between risk and return across multiple risk types[68] - The Group has adopted the "Three Lines of Defence" risk management structure, with the First Line comprising Risk Owners, the Second Line consisting of Risk Controllers, and the Third Line being the Internal Audit Division[71][72] - The Group manages Credit Risk through control limits, delegated lending authorities, underwriting criteria, and internal rating structures[74] - Interest Rate Risk is managed by assessing gap risk, basis risk, and options risk through monitoring repricing mismatches and the impact of interest rate changes[74] - Market Risk is monitored by measuring potential losses due to adverse price movements and market volatility, in line with comprehensive policies and guidelines[74] - Liquidity Risk is managed through cash flow analysis and a contingency funding plan to meet liquidity needs in crisis situations[74] - Operational Risk is controlled via a framework that defines standards and processes, using various tools and systems[74] - Reputation Risk is systematically identified, assessed, monitored, and mitigated, with specific procedures in place for effective stakeholder communication[74] - Strategic Risk is managed by annually updating a five-year strategic plan to align with external and internal changes[78] - The Group proactively manages the Capital Adequacy Ratio (CAR) and conducts regular reviews of Internal Capital Adequacy Assessment Processes[79] - Technology Risk is mitigated through comprehensive training programs and the implementation of control measures to strengthen cybersecurity awareness[81] - The global economic recovery from the COVID-19 contraction remains uncertain, with major economies (China, Europe, and the US) showing mixed consumer and manufacturing indicators[88][93] - The Group conducts regular stress tests to assess the impact of hypothetical scenarios on profitability and Capital Adequacy Ratio (CAR)[88][94] - The Group has implemented measures to tackle cyber security risks, including engaging external consultants and monitoring global threats[89][98] - Political risks, particularly US-China tensions, have intensified due to COVID-19, impacting trade, national security, and technology[89][94] - The Group manages political risks through stress testing capital adequacy, monitoring liquidity coverage, and enhancing credit control on loans affected by US-China trade tensions[90][96] - The Group has strengthened its risk and compliance culture by formulating an accountability framework and enhancing performance management[90][99] - The transition from Interbank Offered Rate (IBOR) to Alternative Reference Rates (ARRs) poses legal, operational, and financial risks, with the Group forming a global cross-functional team to manage the transition[101][103] - The Group has started publishing IBOR transition information and communicating potential impacts to affected customers[103] - The Group is developing ARR product capabilities, with interest rate swaps referencing Sterling Overnight Index Average starting in 2020 and more ARR products planned for 2021[104] - The Group maintains a comprehensive compliance risk management framework, addressing anti-money laundering, counter-financing of terrorism, and other regulatory requirements[105][106] - The Bank of East Asia established a global cross-departmental LIBOR reform project team in late 2019 to develop and implement a transition plan for LIBOR across Hong Kong, mainland China, and overseas operations[109] - The bank began publishing information on LIBOR reform transition on its official website in 2020 to keep investors and the public informed[110] - The bank initiated SONIA-referenced interest rate swap transactions in 2020 and plans to offer more alternative reference rate products in 2021[110] - The bank is committed to maintaining the highest standards of corporate governance and compliance across all jurisdictions where it operates[111] - The bank has a comprehensive compliance risk management framework, with risk and compliance officers embedded in various business, functional, and operational departments[111] - The bank is prepared to meet evolving regulatory requirements, including those related to anti-money laundering, counter-terrorist financing, and data protection[111] Corporate Governance and Leadership - Professor Arthur LI Kwok-cheung, aged 75, was re-appointed as a Director in 2008 and appointed as Deputy Chairman in 2009[115] - Professor Li is an Independent Non-executive Director of Shangri-La Asia Limited and Nature Home Holding Company Limited, both listed in Hong Kong[115] - Dr. Allan WONG Chi-yun, aged 70, was appointed as a Director in 1995 and as Deputy Chairman in 2009[118] - Dr. Wong is the Chairman and Group Chief Executive Officer of VTech Holdings Limited, listed in Hong Kong[118] - Mr. Aubrey LI Kwok-sing, aged 71, was appointed as a Director in 1995 and is Chairman of IAM Family Office Limited[122] - Mr. Li is an Independent Non-executive Director of Café de Coral Holdings Limited, Kowloon Development Co. Ltd, and Pokfulam Development Company Limited, all listed in Hong Kong[122] - Mr. Winston LO Yau-lai, aged 79, was appointed as a Director in 2000 and is the Executive Chairman of Vitasoy International Holdings Limited, listed in Hong Kong[125] - Mr. Lo holds a Bachelor of Science degree in Food Science from the University of Illinois and a Master of Science degree in Food Science from Cornell University[125] - Mr. Adrian David LI Man-kiu, aged 47, was appointed Co-Chief Executive in July 2019, responsible for the overall management and control of the Bank Group, with a particular focus on its Hong Kong Business[131] - Mr. Li holds a Master of Management Degree from Kellogg School of Management, Northwestern University, and a Master of Arts Degree and Bachelor of Arts Degree in Law from the University of Cambridge[135] - Mr. Li is a Member of the Anhui Provincial Committee of the Chinese People's Political Consultative Conference and a Counsellor of the Hong Kong United Youth Association[135] - Mr. Li serves as Chairman of The Chinese Banks' Association and Vice President of The Hong Kong Institute of Bankers' Council[135] - Mr. Li is a Board Member of The Community Chest of Hong Kong and serves on its Executive Committee[135] - Mr. Li is a Member of the Advisory Board of The Salvation Army, Hong Kong and Macau Command[135] - Mr. Li is a Trustee of The University of Hong Kong's occupational retirement schemes[135] - Mr. Li is a Member of the Election Committees responsible for electing the Chief Executive of the Hong Kong Special Administrative Region and deputies of the HKSAR to the 13th National People's Congress[135] - Mr. Li is a Member of the Judging Panel of the BAI Global Innovation Awards[135] - Mr. Li is a Member of The Law Society of England and Wales, The Law Society of Hong Kong, and the Hong Kong Academy of Finance[135] - Mr. Brian David LI Man-bun, aged 46, was appointed Co-Chief Executive in July 2019, responsible for the overall management of the Bank Group, with a focus on China and international businesses[137] - Mr. Li holds an MBA from Stanford University and a BA from the University of Cambridge, and is a Fellow of the Hong Kong Institute of Certified Public Accountants[137] - Dr. Daryl NG Win-kong, aged 42, was appointed a Non-executive Director in 2015 and holds a Bachelor of Arts in Economics and a Master of Science in Real Estate Development from Columbia University[140] - Dr. Ng is the Chairman and Non-independent Non-executive Director of Yeo Hiap Seng Limited, listed in Singapore[140] - Dr. Ng is a member of the Global Leadership Council of Columbia University and holds an Honorary Doctor of Humane Letters from Savannah College of Art and Design[140] - Mr. Masayuki Oku, aged 76, was appointed as a Director in 2015 and serves as an Independent Non-executive Director for multiple Japanese-listed companies including Chugai Pharmaceutical Co., Ltd., Rengo Co., Ltd., and The Royal Hotel, Limited[142] - Mr. Oku is the Honorary Advisor of Sumitomo Mitsui Financial Group, Inc. (SMFG), which owns a

委 BEA東亞銀行 (Stock Code 股份代號：23) Interim Report 2020 中期報告 Contents 目錄 | --- | --- | --- | |---------------------------------------------------------------|-------|--------------------------------| | | | | | | | | | | | | | Financial Highlights Corporate Information | 1 2 | 財務摘要 公司資料 | | Interim Results | 3 | 中期業績 | | | | | | Consolidated Income Statement Consolidated Statement of | 3 5 | 綜合收益表 綜合全面收益表 | | Comprehensive Income Consolidated Statement of Financial | 6 | 綜合財務狀況表 | | Position Consolidated Statemen ...