智通财经APP获悉，日前，大新金融发布今年下半年经济及市场展望，预期中美贸易战虽然稍为缓和， 但前景仍具不确定性，会继续为香港外贸表现带来挑战。该行预测今年香港经济增长2.4%，恒指估值 恢复至较合理水平，下半年有望挑战25000点。 温嘉炜又提到，受惠中美暂时下调双方关税税率，预料香港今年经济增长2.4%。此外，美联储今年减 息步伐不明朗，或影响香港楼市前景，加上旅游业逆差持续，或继续限制香港本地消费市道。 集团首席经济及策略师温嘉炜表示，港股估值恢复至较合理水平。中美贸易前景未明朗，港股或持续波 动，同时市场继续关注内地刺激经济措施成效。恒指下半年有望挑战25000点，支持位会在20800点附 近。高股息率、内需消费及创科板块前景或较正面。 但他补充，香港大型体育场馆落成并陆续举行多项大型活动，预计或助带动部分零售消费活动，加上香 港股市近期反复回升，短线或有助提振消费气氛。他又表示，香港按揭利率从高位显著回落，同时租金 回报率逐步回升，有助纾缓香港楼价下行压力。然而，一手住宅潜在供应充裕，加上贸易战为经济前景 带来不明朗因素，预计2025年全年香港楼价或可能跌约5%。 他又指，中国内地出口短线可望保持增 ...

Financial Performance - Profit attributable to shareholders reached HK$1,673 million in 2024, a rise of 5.1% compared to HK$1,592 million in 2023[7]. - Basic earnings per share increased to HK$5.25 in 2024, up from HK$4.99 in 2023, reflecting a growth of 5.2%[7]. - Total dividend distribution for 2024 was HK$669 million, compared to HK$637 million in 2023, marking a 5.0% increase[7]. - The Group's profit attributable to shareholders increased by 5% to HK$1,673 million, driven by higher net interest and non-interest income[60]. - Profit attributable to shareholders rose by 5.1% to HK$1,673.1 million in 2024, up from HK$1,592.1 million in 2023[74]. - Operating income rose by 17.2% to HK$6,934.9 million, driven by higher net interest income and improved asset yields[87]. - The Group's operating profit before credit impairment losses increased by 25.9% to HK$3,767.8 million in 2024, compared to HK$2,993.4 million in 2023[74]. Assets and Liabilities - Total assets decreased to HK$266,523 million in 2024 from HK$269,789 million in 2023, a decline of 1.0%[7]. - The total liabilities, including subordinated notes, were HK$223,325 million in 2024, down from HK$228,790 million in 2023, a decrease of 2.4%[7]. - The consolidated Common Equity Tier 1 ratio increased to 16.9% as of December 31, 2024, up from 16.2% at the end of 2023[96]. Deposits and Loans - Total deposits decreased to HK$204,894 million in 2024 from HK$208,963 million in 2023, a decline of 2.6%[7]. - Advances to customers (excluding trade bills) were HK$138,374 million in 2024, down from HK$143,049 million in 2023, a decrease of 3.7%[7]. - Customer deposits rose from HK$206,535 million in 2023 to HK$200,599 million in 2024, indicating a slight decrease of 2.0%[7]. - Loan growth was weak, with overall loan balances declining by 3% due to subdued demand in core markets[61]. - The total loan volume in Hong Kong dropped by approximately 3% year-on-year, with refinancing being the primary driver of loan demand[120]. Economic Environment - The economic growth in Hong Kong for 2024 is expected to be moderate, influenced by high interest rates affecting loan demand and consumer confidence[65]. - Hong Kong's economic growth slowed to 2.5% in 2024 from 3.2% in 2023, impacted by weak domestic demand[78]. - Geopolitical risks, including the Russia-Ukraine war and US-China trade conflicts, have dampened economic growth and reduced international trade activities[196]. Governance and Leadership - The company has a strong board with members holding significant experience in finance, banking, and regulatory affairs[27][28][29][31][32][33]. - The company is focused on maintaining high standards of governance and compliance through its independent directors[28][32]. - The leadership team is well-positioned to navigate market challenges and pursue growth opportunities in the banking industry[41]. - The company continues to strengthen its board with experienced professionals from diverse banking backgrounds, enhancing strategic decision-making capabilities[39][41]. Risk Management - The Group maintained a prudent approach to expense control and risk management amidst a high interest rate environment[54]. - Credit impairment charges surged by 145.0% year-on-year, primarily due to increased provisions for credit losses in the Mainland China property sector and Hong Kong commercial real estate[89]. - The Group employs Expected Credit Loss (ECL) models to assess impairment provisions, considering macroeconomic factors and risk characteristics[197]. - The Group's fraud risk management framework includes a dedicated team to improve fraud awareness and prevention in a rapidly changing market[200]. Insurance and Investment Operations - Insurance revenue increased by 19.3% to HK$1,154 million in 2024, up from HK$967 million in 2023[166]. - The Group's insurance operations faced risks from natural disasters, but the impact on financial position was immaterial due to prudent underwriting and reinsurance arrangements[199]. - The solvency ratio of Macau Insurance Company (MIC) was 919% in 2024, down from 1,288% in 2023[175]. - DSI achieved gross premium written (GPW) of HK$916 million, with a compound annual growth rate of over 10% from 2019 to 2024 and a year-on-year growth of 9%[186]. Digital Transformation and Customer Experience - Digital transactions surged by 42% year-on-year in 2024 due to enhancements in the "Next Best Action" AI solution and the launch of a streamlined identity verification service for SMEs[112]. - The bank continues to focus on enhancing digital solutions and improving customer experience through system upgrades and process changes[131][138]. - The bank's strategy includes gradually renovating and relocating branches to enhance customer service and digital experience, while transitioning to paperless operations[113].

Financial Performance - Net interest income for the year ended December 31, 2024, increased by 9.1% to HK$5,400,675,000 compared to HK$4,950,897,000 in 2023[4] - Service fee and commission income rose by 54.0% to HK$1,311,006,000 from HK$851,249,000 year-on-year[4] - Total operating income increased by 15.5% to HK$7,211,133,000, up from HK$6,243,413,000 in the previous year[4] - Profit before tax for the year was HK$2,546,899,000, reflecting an 8.1% increase from HK$2,355,769,000 in the prior year[4] - The annual profit attributable to shareholders was HK$1,673,119,000, a 5.1% increase from HK$1,592,095,000 in 2023[4] - Basic earnings per share rose to HK$5.25 from HK$4.99, while diluted earnings per share increased to HK$4.36 from HK$4.11[4] - The operating profit before credit impairment losses for 2024 was HKD 3,767,754, up from HKD 2,993,448 in 2023, reflecting a growth of approximately 25.8%[19] - The annual profit for 2024 was HKD 2,201,181, a rise from HKD 2,068,886 in 2023, which is an increase of approximately 6.4%[19] - The pre-tax profit for 2024 was HKD 2,546,899, up from HKD 2,355,769 in 2023, indicating a growth of about 8.1%[22] - The company’s net profit attributable to shareholders increased by 5% to HKD 1.673 billion in 2024, driven by higher net interest and non-interest income[58] Credit and Impairment - The company reported a credit impairment loss of HK$1,790,240,000, a significant increase of 144.7% compared to HK$731,509,000 in 2023[4] - Credit impairment losses for 2024 amounted to HKD 1,790,240, compared to HKD 731,509 in 2023, showing an increase of about 144.5%[19] - The credit impairment loans and advances represent 3.21% of total customer loans and advances, an increase from 1.94% in 2023[41] - The total impairment provisions for loans and advances increased to HKD 1,532,345,000 in 2024 from HKD 1,113,256,000 in 2023[41] - The company maintains a cautious approach to credit risk management, particularly in light of weak loan growth and high credit risk in the banking sector[62] Assets and Liabilities - Total assets as of December 31, 2024, were HK$266,523,315,000, a slight decrease from HK$269,788,561,000 in 2023[6] - Total liabilities decreased to HK$223,325,171,000 from HK$228,789,977,000 year-on-year[6] - Total assets as of December 31, 2024, amounted to HK$266,523,315, a slight decrease from HK$269,788,561 in 2023, reflecting a decline of approximately 1%[22] - The net amount of loans and advances after impairment provisions is HKD 136,841,940,000, down from HKD 141,936,220,000 in 2023[41] - The total amount of financial assets measured at fair value through profit or loss is HKD 1,999,039,000, an increase of 18.9% from HKD 1,680,710,000 in 2023[36] Dividends and Shareholder Returns - The company declared an interim dividend of HK$292,942,000, significantly higher than HK$114,659,000 in the previous year[4] - The board proposed a final dividend of HKD 1.18 per share for the fiscal year 2024, subject to shareholder approval[54] - The company announced a final dividend of HKD 1.18 per share, totaling HKD 668.761 million for the year, a 5% increase from HKD 2.00 in 2023[57] Operational Segments and Strategy - The group’s operational segments include personal banking, corporate banking, treasury and global markets, mainland China and Macau banking, insurance and investment, and other operations[18] - The company continues to focus on expanding its services in Hong Kong, Macau, and mainland China, with over 90% of external customer revenue generated from these regions[21] - The company continues to support local SMEs through new measures and has established a "three regions, four platforms" strategy to enhance cross-border financial services[61] Income Sources - The company reported a significant increase in non-interest income, which reached HKD 1,810,458 in 2024, up from HKD 1,292,516 in 2023, marking a growth of about 40.0%[19] - Net interest income rose by 9%, reflecting the impact of higher interest rates and effective management of funding costs, while net interest margin expanded by 16 basis points to 2.17%[58] - Total premium income increased to HKD 1,245,969 thousand in 2024, up from HKD 1,061,373 thousand in 2023, representing a growth of approximately 17.3%[50] - Net premium income rose to HKD 626,789 thousand in 2024, compared to HKD 553,329 thousand in 2023, reflecting an increase of about 13.3%[50] Market Conditions and Economic Outlook - The economic growth in Hong Kong for 2024 is projected at 2.5%, down from 3.2% in 2023, influenced by high interest rates and weak local demand[58] Regulatory and Reporting Standards - The group has adopted new and revised standards effective from January 1, 2024, which are not expected to have a significant impact on the consolidated financial statements[9] - The group is currently evaluating the specific impact of the new Hong Kong Financial Reporting Standard No. 18 on its consolidated financial statements, which will enhance comparability and provide more relevant information[13][14] Miscellaneous - The company held no trade bills overdue for more than three months as of December 31, 2024, and 2023[43] - The 2024 annual report will be published on the Hong Kong Stock Exchange and Dah Sing Bank's website by the end of April 2025[67] - The board of directors includes key executives such as the Chairman, Vice Chairman, and Group General Manager[68] - The company secretary is Li Zongrong, with the announcement dated March 31, 2025[69]

Financial Performance - Net interest income increased by 11.2% to HK$2,594,639, compared to HK$2,332,512 in 2023[6] - Net fee and commission income rose significantly by 61.2% to HK$594,753, up from HK$368,967 in the previous year[6] - Total operating income grew by 19.8% to HK$3,392,598, compared to HK$2,833,003 in 2023[6] - Operating profit before impairment losses increased by 40.8% to HK$1,769,951, up from HK$1,256,887 in 2023[6] - Profit for the period reached HK$1,470,192, representing a 21.8% increase from HK$1,206,845 in 2023[9] - Earnings per share increased, with basic earnings at HK$3.49 compared to HK$2.89 in 2023, and diluted earnings at HK$2.92 versus HK$2.74[6] - Total comprehensive income for the period, net of tax, was HK$2,092,884, up from HK$1,457,633 in 2023[9] - Other comprehensive income for the period, net of tax, amounted to HK$614,135, compared to HK$338,427 in the previous year[9] Asset and Liability Management - Total assets as of June 30, 2024, increased to HK$272,365,908, up from HK$269,788,561 as of December 31, 2023, representing a growth of approximately 0.6%[11] - Total liabilities increased to HK$229,967,035 from HK$228,789,977, marking a rise of about 0.5%[11] - Customer deposits rose to HK$207,664,546, compared to HK$206,535,360, reflecting an increase of approximately 0.5%[11] - Cash and balances with banks decreased to HK$13,403,439 from HK$16,925,694, a decline of about 20.8%[11] - The company’s financial assets at fair value through profit or loss totaled HK$1,460,615, compared to HK$1,680,710 in the previous period, indicating a decrease of approximately 13.1%[11] Credit and Impairment - Credit impairment losses surged by 243.4% to HK$543,863, compared to HK$158,386 in the previous year[6] - New credit impairment losses for the period were HK$582,258, significantly higher than HK$198,180 in 2023, reflecting a 194.5% increase[34] - Total impairment allowances increased to HK$1,180,190, up from HK$1,113,256, reflecting a rise of 6.0%[50] - Credit-impaired loans and advances as a percentage of total loans and advances to customers increased slightly to 1.96% from 1.94%[52] Cash Flow and Dividends - Cash flows from operating activities for the same period amounted to HK$2,919,591,000, compared to a net cash used of HK$1,622,156,000 in the previous year[17] - The company paid dividends of HK$522,681,000 on ordinary shares during the period, compared to HK$258,533,000 in the same period last year[17] - The company reported a net cash used in investing activities of HK$141,107,000, compared to HK$38,598,000 in the prior period[17] - The net cash used in financing activities was HK$2,865,323,000, significantly higher than HK$601,917,000 in the previous year[17] Risk Management - The Group focuses on managing various risks including credit risk, market risk, interest rate risk, liquidity risk, operational risk, reputation risk, and strategic risk[158] - The independent Group Risk function is responsible for establishing policies and monitoring the Group's risk positions, ensuring financial risks are considered in product planning and pricing[160] - The Group has established a Group Credit Committee responsible for approving major credit limits, with functional committees managing loan and treasury business risks[160] - The Group's risk management tools are continually improved to meet evolving business needs and regulatory requirements[160] Economic Outlook - Persistent high interest rates and geopolitical risks are expected to dampen borrowing and investment activities, leading to a slightly pessimistic overall outlook[165] - The credit quality management of the Group's portfolios remains challenged due to the credit deterioration of PRC property developers[165] - The Hong Kong GDP growth rate forecast for the base scenario as of June 30, 2024, is 2.4%, while the good scenario is 7.0%, and the bad scenario is -2.3%[169] Segment Performance - The Group's banking operations in Mainland China and Macau included personal and corporate banking services, reflecting a diversified revenue stream[119] - The insurance business segment generated significant revenue, contributing to the overall performance of the Group[119] - The Group's personal banking business includes services such as residential mortgage lending and credit card services, while corporate banking focuses on deposits and loans for commercial clients[116] Investment and Securities - The total value of trading securities and financial assets at fair value through profit or loss as of June 30, 2024, was HK$3,334,340,000, a decrease from HK$3,420,551,000 at the end of 2023[43] - The fair value of investment properties increased to HK$796,047,000 as of June 30, 2024, from HK$709,859,000 as of December 31, 2023, reflecting a revaluation process[72] - The total amount of gross loans and advances, net of impairment allowances, was HK$140,193,445, down from HK$141,936,220[51] Regulatory and Compliance - The Board of Directors has overall responsibility for risk management, including approving strategies and policies for managing credit and other risks[159] - The Group's internal auditors conduct regular reviews to ensure compliance with credit policies and regulatory guidelines[162] - The Group has implemented policies and processes for the approval and review of new products and activities, including details on loan grading and impairment policies[162]

Financial Performance - The net profit attributable to shareholders for the six months ended June 30, 2024, was HK$1,112,382, representing a 20.7% increase from HK$921,862 in the same period of 2023[3]. - Total operating income for the group reached HK$3,392,598, an increase of 19.8% compared to HK$2,833,003 in the previous year[3]. - Basic earnings per share for the period were HK$3.49, up from HK$2.89 in the previous year[3]. - The interim dividend declared was HK$294,009, significantly higher than HK$115,047 in the same period last year[3]. - The group reported a total comprehensive income of HK$2,092,884 for the period, compared to HK$1,457,633 in 2023, marking a substantial increase[4]. - The operating profit before impairment losses was HK$1,769,951, reflecting a 40.8% increase from HK$1,256,887 in 2023[3]. - The profit before tax for the first half of 2024 was HKD 1,658,124, reflecting a significant increase compared to the previous year[36]. - The profit before tax for the six months ended June 30, 2024, was HKD 1,658,124, compared to HKD 1,309,208 for the same period in 2023, indicating an increase of about 27%[38]. Income Sources - Net interest income increased to HK$2,594,639, up 11.2% from HK$2,332,512 in 2023[3]. - Service fee and commission income rose significantly to HK$711,602, a 50.4% increase from HK$472,779 in the prior year[3]. - The company reported a significant increase in securities investment income, which rose to HKD 2.18 billion from HKD 1.77 billion, an increase of 23.5%[9]. - Net trading income for the same period was HKD 99,924,000, significantly up from HKD 4,762,000 in 2023[12]. - Non-interest income surged by 77%, primarily driven by growth in net service fees, commissions, and trading income[43]. Assets and Liabilities - Total assets increased to HKD 272.37 billion as of June 30, 2024, compared to HKD 269.79 billion at the end of 2023, representing a growth of 0.65%[5]. - The total liabilities of the company stood at HKD 229.97 billion as of June 30, 2024, compared to HKD 228.79 billion at the end of 2023, indicating a marginal increase of 0.52%[5]. - The equity attributable to shareholders increased to HKD 33.89 billion from HKD 32.68 billion, reflecting a growth of 3.7%[5]. - The total amount of financial assets measured at fair value through profit or loss was HKD 3,334,340,000 as of June 30, 2024, down from HKD 3,420,551,000 in December 2023, a decrease of 2.5%[22]. - The total liabilities for insurance and reinsurance contracts were HKD 1,321,027,000 as of June 30, 2024, a decrease from HKD 1,367,305,000 at the end of 2023[32]. Credit and Impairment - The company’s net credit impairment losses for customer loans and advances were HKD 550,546,000, compared to HKD 220,825,000 in 2023, indicating a significant increase[16]. - The credit impairment losses for the first half of 2024 were HKD 543,863, compared to HKD 277,530 in the same period of the previous year, indicating an increase in credit losses[36]. - The total impairment provisions for loans and advances amounted to HKD 1,180,190,000 in 2024, compared to HKD 1,113,256,000 in 2023, indicating an increase of 6.0%[26]. - The credit impairment loans and advances accounted for 1.96% of total customer loans and advances in 2024, slightly up from 1.94% in 2023[26]. Operational Efficiency - The cost-to-income ratio improved to 48.5% for the six months ended June 30, 2024, down from 57.0% for the same period in 2023, indicating enhanced operational efficiency[39]. - The average return on total assets (annualized) increased to 1.1% for the six months ended June 30, 2024, compared to 0.9% for the same period in 2023[39]. - The net interest income to operating income ratio decreased to 77.2% for the six months ended June 30, 2024, from 84.3% for the same period in 2023, suggesting a shift in revenue composition[39]. Strategic Focus - The company is focused on expanding its services in Hong Kong, Macau, and China, enhancing its banking, insurance, and financial services offerings[6]. - The company is focusing on expanding its banking and insurance services in mainland China and Macau, aiming to enhance its market presence in these regions[35]. - The group anticipates potential economic rebound and improved credit conditions in the coming months, despite ongoing challenges in loan demand and credit costs[45]. - The group continues to focus on prudent risk management and operational efficiency amid economic uncertainties in the first half of 2024[42]. Employee and Shareholder Matters - Employee compensation and benefits expenses increased to HKD 1,125,443,000 in 2024 from HKD 1,068,664,000 in 2023, reflecting a rise of 5.3%[14]. - There were no significant changes in employee compensation, compensation policies, and training programs compared to the disclosures in the 2023 annual report[50]. - The board declared an interim dividend of HKD 0.92 per share, to be distributed on September 26, 2024[40]. - The company purchased a total of 160,000 shares at a total cost of HKD 3,508,935.16 during the six-month period ending June 30, 2024[49].

Financial Performance - Shareholders' funds increased to HK$32,682 million in 2023, up from HK$29,601 million in 2022, representing a growth of 6.99%[4] - Profit attributable to shareholders for 2023 was HK$1,592 million, a 30.1% increase from HK$1,224 million in 2022[4] - Basic earnings per share for 2023 was HK$5.28, up from HK$4.99 in 2022, reflecting a growth of 5.8%[5] - Total dividend distribution for 2023 reached HK$637 million, significantly higher than HK$364 million in 2022, indicating a growth of 75%[4] - The group's profit for the year increased by 30% to HK$1,592 million for the year ended December 31, 2023[46] - Operating profit before credit impairment losses decreased by 28% to HK$2,993.4 million, while excluding the one-off gain from 2022, it increased by 14%[50] - The Group's operating income decreased by 13.3% to HK$5,916.1 million, primarily due to one-off expenses related to the termination of a distribution agreement[64] - Operating profit after credit impairment losses was HK$2,261.9 million, a decrease of 26.5% compared to the previous year[56] - The cost-to-income ratio increased to 52.1% from 44.4%[56] - The Group's profit attributable to shareholders increased by 30.0% to HK$1,592 million in 2023[63] Asset and Liability Management - Total assets grew to HK$269,789 million in 2023, up from HK$259,159 million in 2022, representing a growth of 4.0%[6] - The bank's total liabilities, including subordinated notes, increased to HK$228,790 million in 2023 from HK$221,924 million in 2022, a rise of 3.9%[4] - The total assets increased by 4.1% to HK$269,789 million, while total liabilities rose by 3.1% to HK$228,790 million[59] - The consolidated Common Equity Tier 1 ratio increased to 16.2% in 2023, up from 15.2% at the end of 2022[70] - The liquidity maintenance ratio averaged 64.0% in 2023, significantly higher than the previous year's 50.4%[123] Customer Deposits and Advances - Total deposits rose to HK$208,963 million in 2023, compared to HK$202,804 million in 2022, marking an increase of 3.56%[4] - The number of customer deposits increased, with deposits from customers reaching HK$206,535 million in 2023, up from HK$198,575 million in 2022, a growth of 4.8%[4] - Advances to customers (excluding trade bills) amounted to HK$143,049 million in 2023, compared to HK$136,530 million in 2022, an increase of 4.4%[4] - Total credit card spending increased by 11% year-on-year in 2023, with credit card balances rising by 4.6% compared to the end of 2022[76] Strategic Initiatives and Partnerships - The group entered into a 15-year exclusive bancassurance partnership with Sun Life Group, effective from July 2023[45] - The establishment of the Shenzhen Branch aligns with the Greater Bay Area strategy, enhancing cross-border business opportunities[49] - Dah Sing Bank launched a 15-year exclusive bancassurance partnership with Sun Life Hong Kong Limited in July 2023, enhancing its wealth management offerings with a diverse range of life and medical protection products[75][80] - The company is focused on expanding its corporate banking services in Greater China and South Korea, leveraging the expertise of its directors[29] Risk Management and Compliance - The Company emphasizes the importance of risk management and quality assurance in its operations[23] - The Group adopted cautious credit management and investment strategies throughout the year in response to challenging market conditions and weak credit demand[121] - The Group established a fraud risk management framework to enhance fraud awareness and prevention amid changing market conditions[128] - The Group Compliance Committee is responsible for overseeing the development and maintenance of compliance systems to ensure adherence to statutory requirements and regulatory guidelines[198] Corporate Governance - The Company is focused on maintaining high standards of corporate governance and compliance through its independent directors[20][22] - The Board of Directors consists of 9 directors and 1 alternate director as of December 31, 2023, including executive directors and independent non-executive directors[144] - The Company has complied with all code provisions of the Corporate Governance Code, except for code provision F.2.2, as explained in the report[139] - The Board has delegated day-to-day management responsibilities to the Management while retaining oversight of key governance functions[143] - The Company has established a Board Governance Policy and Procedures, subject to annual review for effectiveness[139] Leadership and Management - Dah Sing Bank has a strong leadership team with extensive experience in banking and finance, enhancing its operational capabilities[34][35][38] - The leadership team is committed to fostering a culture of governance and ethical standards within the organization, drawing from their extensive backgrounds in financial services[24][25] - The Group's commitment to promoting its "Culture & Values" was evident through initiatives like the second "Culture Week" and the "Dah Sing Star Awards" for employee recognition[133] - Employee turnover improved significantly compared to 2022, despite intense competition for talent in the banking industry[135] Digital Transformation - The company continues to invest in digital solutions and upgrade its digital banking platform, DS-Direct, to enhance customer experience and service quality[87] - Digital transaction volume grew by 48% during the year[74] - The Group aims to enhance its internal control systems and procedures continuously[200] Insurance and Investment Operations - Insurance income for the group increased to HK$967 million in 2023 from HK$852 million in 2022[100] - The group's general insurance business achieved a pre-tax profit of HK$148 million in 2023, compared to HK$83 million in 2022[100] - The overall investment return for the general business was HK$558 million, aligning closely with market performance[109] - The pension management business reported a net profit growth of 80.6% year-on-year, attributed to higher interest income and a 9.6% increase in Pension Assets Under Management[119]

Financial Performance - The total operating income for the year ended December 31, 2023, was HK$6,243,413, a decrease of 10.6% from HK$6,985,941 in 2022[3]. - Annual profit for the year was HK$2,068,886, representing a 26.4% increase compared to HK$1,636,710 in 2022[4]. - Basic earnings per share rose to HK$4.99 from HK$3.83, reflecting a growth of 30.0%[3]. - The company proposed a final dividend of HK$522,218, up from HK$258,856 in the previous year[3]. - The total comprehensive income for the year amounted to HK$4,290,168, a significant recovery from a loss of HK$158,004 in the previous year[4]. - The group reported a 30% increase in profit attributable to shareholders, amounting to HKD 1,592,000,000[46]. - The average return on equity improved to 17.7% in 2023, compared to a negative 11.5% in 2022[42]. Income Sources - Net interest income increased by 11.7% to HK$4,950,897 from HK$4,431,408 in the previous year[3]. - Net service fee and commission income decreased significantly by 61.9% to HK$851,249 from HK$2,235,961 in 2022[3]. - Non-interest income for the same period was HKD 1,292,516, with corporate banking generating HKD 748,390 and insurance business contributing HKD 148,483[15]. - Insurance income for 2023 was HKD 935,891, up from HKD 838,035 in 2022, while insurance service performance decreased to HKD 77,800 from HKD 111,303[19]. - The total premium income reached HKD 1,061,373,000, up from HKD 992,113,000 in 2022, marking a significant growth[42]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to HKD 269,788,561 thousand, an increase of 4.3% from HKD 259,159,076 thousand in 2022[5]. - The total liabilities increased to HKD 228,789,977 thousand, a rise of 3.9% compared to HKD 221,924,039 thousand in 2022[5]. - Shareholders' equity totaled HKD 40,998,584 thousand, reflecting an increase of 4.7% from HKD 37,235,037 thousand in the previous year[5]. - The total amount of financial assets measured at fair value increased to HKD 45,741,844 million in 2023 from HKD 42,046,836 million in 2022, reflecting a growth of approximately 6.4%[36]. - The total amount of financial assets at amortized cost increased to HKD 39,421,145 million in 2023, up from HKD 33,001,145 million in 2022, marking a growth of approximately 19.5%[37]. Credit and Impairment - Credit impairment losses decreased to HK$731,509 from HK$803,854, showing an improvement in credit quality[3]. - The impairment loss on credit decreased to HKD 731,509,000 in 2023 from HKD 803,854,000 in 2022[21]. - The percentage of credit-impaired loans and advances to total customer loans and advances was 1.94% in 2023, slightly up from 1.86% in 2022[30]. - The total overdue loans exceeding 3 months amounted to HKD 2,167,589 thousand in 2023, which is 1.51% of total loans, compared to 1.36% in 2022[31]. - The group anticipates that the credit risk will remain a consideration, with credit costs expected to stay at relatively high levels[48]. Regulatory and Accounting Changes - The company has adopted new and revised accounting standards effective from January 1, 2023, which may not have a significant impact on its financial statements[7]. - The group adopted HKFRS 17, which requires the use of a current measurement model and remeasurement of estimates at each reporting period[10]. - The retrospective adjustments were made in accordance with the transitional provisions of HKAS 8 and HKFRS 17, effective from January 1, 2022[10]. Strategic Developments - The group continues to focus on expanding its personal and corporate banking services while enhancing its insurance offerings in the Hong Kong and Macau markets[14]. - The group established a 15-year exclusive banking insurance partnership with Sun Life Financial, effective from July 2023[45]. - The new Shenzhen branch opened on August 1, 2023, focusing on providing RMB loans, deposits, and remittance services to domestic corporate clients[45]. - The implementation of a new core banking system was successfully completed in 2023, enhancing customer service and operational efficiency[48].

Financial Performance - For the six months ended June 30, 2023, the net interest income increased by 15.0% to HK$2,332,512, compared to HK$2,027,699 in 2022[5]. - The profit for the period rose by 7.4% to HK$1,206,845, compared to HK$1,124,154 in the same period of 2022[8]. - Basic earnings per share increased to HK$2.89 from HK$2.64, reflecting a growth in profitability[5]. - Total operating income for the period was HK$2,833,003, a 3.2% increase from HK$2,745,174 in 2022[5]. - Operating profit before impairment losses was HK$1,256,887, a slight decrease of 2.2% from HK$1,285,009 in the previous year[5]. - Total comprehensive income for the period, net of tax, was HK$1,457,633, compared to a loss of HK$555,802 in the previous year[8]. - The company reported a profit for the period of HKD 921.86 million, compared to HKD 24.54 billion in retained earnings, indicating a strong performance[12]. Income and Expenses - Net fee and commission income decreased by 22.4% to HK$368,967, down from HK$475,194 in the previous year[5]. - The operating expenses increased by 7.9% to HK$1,576,116, compared to HK$1,460,165 in the previous year[5]. - Interest income for the six months ended June 30, 2023, was HK$5,344,223, compared to HK$2,702,568 in 2022, representing an increase of 97.5%[33]. - Interest expense for the six months ended June 30, 2023, was HK$3,011,711, up from HK$674,869 in 2022, indicating a significant rise[33]. - Net fee and commission income for the six months ended June 30, 2023, was HK$472,779, compared to HK$564,056 in 2022, showing a decrease of 16.2%[35]. - The insurance service result after net insurance finance expense for the six months ended June 30, 2023, was HK$43,612, down from HK$54,932 in 2022[38]. Assets and Liabilities - Total assets decreased slightly to HKD 258.80 billion as of June 30, 2023, from HKD 259.16 billion at the end of 2022, representing a decline of 0.14%[10]. - Total liabilities decreased to HKD 220.51 billion from HKD 221.94 billion, a reduction of 0.65%[10]. - Cash and balances with banks decreased to HKD 16.94 billion, down from HKD 18.69 billion, a reduction of 9.36%[10]. - Customer deposits increased to HKD 201.36 billion, up from HKD 198.57 billion, reflecting a growth of 1.91%[10]. - Total equity attributable to the company's shareholders increased to HKD 38.30 billion from HKD 37.21 billion, marking a growth of 2.93%[10]. Cash Flow - Cash flows from operating activities showed a net cash outflow of HKD 1,622,156, compared to a net inflow of HKD 5,731,318 in the previous year[16]. - Net cash used in investing activities was HKD 38,598, a slight decrease from HKD 219,728 in the prior year[16]. - Net cash used in financing activities increased to HKD 601,917 from HKD 475,063 year-over-year[16]. - The total cash and cash equivalents at the end of the period decreased to HKD 20,261,149 from HKD 21,731,658 in the previous year[16]. Impairment and Provisions - Credit impairment losses significantly decreased by 48.2% to HK$158,386, down from HK$305,600 in 2022[5]. - New credit impairment losses were recorded at HK$198,180,000 in 2023, down from HK$335,696,000 in 2022, indicating a decrease of 41.0%[44]. - The Group recognized an additional impairment charge of HK$232,000,000 in the first half of 2023, reducing the value of the investment in Bank of Chongqing to HK$2,016,000,000[45]. - Stage 3 impairment allowances as of June 30, 2023, were HK$262,140, down from HK$632,380 as of December 31, 2022[70]. Regulatory and Compliance - The adoption of HKFRS 17, which requires a current measurement model for insurance contracts, is expected to impact the financial statements significantly going forward[22]. - The Group has applied a simplified premium allocation approach for qualifying short-duration insurance contracts, which may streamline reporting processes[24]. - The Group's regulatory reserve increased to HK$617,258,000 as of June 30, 2023, up from HK$438,466,000 as of December 31, 2022[115]. Risk Management - The Group's credit risk primarily arises from its credit portfolios, which include corporate and retail lending, equipment financing, and wholesale lending to financial institutions[198]. - The Group's market risk is mainly associated with its trading book and investment securities, managed by the Treasury & Global Markets Division[198]. - Liquidity risk is defined as the inability to fund increases in assets or meet payment obligations without incurring unacceptable losses[198]. - Operational risk involves potential losses due to inadequate internal processes, people, systems, or external events[198]. - The Board of Directors is responsible for the overall management of all types of risk, including the approval of strategies and policies to manage credit and other risks at both transaction and portfolio levels[200]. Future Strategies - The company plans to expand its market presence, focusing on increasing its debt securities portfolio and enhancing customer loans[88]. - Future strategies include leveraging new technologies and products to drive growth and improve operational efficiency[88]. - The company plans to continue expanding its market presence in Mainland China and Macau, focusing on enhancing its banking and insurance services[160]. - Future strategies include potential mergers and acquisitions to strengthen the company's market position and diversify its service offerings[160].

Financial Performance - The net profit attributable to shareholders for the six months ended June 30, 2023, was HK$921.86 million, representing a 9.4% increase from HK$842.40 million in 2022[2] - Basic earnings per share for the period were HK$2.89, an increase from HK$2.64 in 2022[3] - The company reported a profit for the period of HKD 1,206,845 for the six months ended June 30, 2023, compared to HKD 1,309,208 for the same period in 2022, showing a decrease of approximately 7.8%[43] - The group reported a pre-tax profit of HKD 1,306,490 for the six months ended June 30, 2022[44] - The group's profit attributable to shareholders increased by 9% to HKD 922 million in the first half of 2023[49] Income and Revenue - Interest income for the period was HK$5.34 billion, up from HK$2.70 billion in the previous year, while net interest income increased by 15.0% to HK$2.33 billion[3] - Total operating income amounted to HK$2.83 billion, a 3.2% increase compared to HK$2.75 billion in the same period last year[3] - The company reported a significant reduction in credit impairment losses by 48.2%, from HK$305.60 million to HK$158.39 million[3] - The company declared an interim dividend of HK$115.05 million, compared to HK$105.46 million in the previous year, reflecting a growth of 9.8%[3] - The group’s average return on equity remained at 7.4% for both the six months ended June 30, 2023, and 2022[46] Expenses and Liabilities - Total operating expenses rose to HKD 1,576,116,000 in 2023 from HKD 1,460,165,000 in 2022, an increase of approximately 8%[21] - The effective tax rate remained stable at 16.5% for both 2023 and 2022, with total tax expenses decreasing to HKD 102,363,000 in 2023 from HKD 182,336,000 in 2022[26] - The total amount of liabilities related to insurance and reinsurance contracts was HKD 1,239,250,000 as of June 30, 2023, up from HKD 1,097,994,000 as of December 31, 2022[39] Assets and Capital - The total assets as of June 30, 2023, were HK$258.80 billion, a slight decrease from HK$259.16 billion at the end of 2022[8] - The total equity of Dah Sing Financial Group was HKD 30,498,841, an increase from HKD 29,579,235 as of December 31, 2022, representing a growth of approximately 3.1%[40] - The group’s capital adequacy ratios remained strong, with a Common Equity Tier 1 capital ratio of 15.6% and a total capital ratio of 19.7% as of June 30, 2023[51] Credit and Loans - Credit impairment losses for customer loans and advances were HKD 220,825,000 in 2023, down from HKD 363,349,000 in 2022, indicating a reduction of 39%[23] - The percentage of credit-impaired loans and advances to total customer loans and advances was 1.85% as of June 30, 2023, slightly down from 1.86% as of December 31, 2022[33] - Total overdue loans as of June 30, 2023, amounted to HKD 2,077,635, representing 1.49% of total loans, an increase from HKD 1,855,344 or 1.36% as of December 31, 2022[34] Strategic Initiatives - The company plans to continue expanding its market presence in mainland China and Macau, leveraging its subsidiaries to enhance personal and corporate banking services[42] - Dah Sing Financial Group is actively investing in new technology and product development to improve customer service and operational efficiency[42] - The group is exploring strategic acquisitions to enhance its competitive position in the financial services market[42] Market Outlook - The group anticipates a GDP growth forecast of 4%-5% for Hong Kong in 2023, an improvement from the previous year[52] - The group expects continued low demand for loans due to the high-interest environment, with investment sentiment remaining subdued[52] - The company plans to manage its wholly-owned businesses with a cautious outlook for the second half of 2023[52] Regulatory and Compliance - Dah Sing Bank designated HKD 617,258,000 as regulatory reserves as of June 30, 2023, up from HKD 438,466,000 at the end of 2022, indicating a focus on maintaining adequate capital buffers[41] - The solvency ratio for Hong Kong operations was reported at 1,479% as of June 30, 2023, up from 1,457% at the end of 2022[46] Shareholder Information - The group announced an interim dividend of HKD 0.36 per share, to be distributed on September 21, 2023[47] - The mid-term performance report for 2023 will be published on the Hong Kong Stock Exchange and the company's website by the end of September 2023[57]

Financial Performance - Shareholders' funds decreased to HK$29,520 million in 2022 from HK$30,192 million in 2021[11] - Total deposits increased to HK$202,804 million in 2022 from HK$201,512 million in 2021[11] - Advances to customers (excluding trade bills) decreased to HK$136,530 million in 2022 from HK$144,313 million in 2021[11] - Profit attributable to shareholders decreased to HK$1,171 million in 2022 from HK$1,308 million in 2021[11] - Total dividend distribution increased to HK$364 million in 2022 from HK$339 million in 2021[11] - Basic earnings per share decreased to HK$3.67 in 2022 from HK$4.09 in 2021[11] - Dividends per share increased to HK$1.14 in 2022 from HK$1.06 in 2021[11] - Total assets increased to HK$259,847 million in 2022, up from HK$250,312 million in 2021[12] - Basic earnings per share for 2022 was HK$5.72, compared to HK$4.09 in 2021[12] - Dividends per share (excluding special dividend) rose to HK$3.62 in 2022 from HK$1.06 in 2021[12] - Profit attributable to shareholders decreased by 10% to HK$1,171 million for the year ended 31 December 2022, primarily due to a gain on the termination of the previous insurance distribution agreement and a larger-than-usual impairment charge on the investment in Bank of Chongqing[41][42] - Excluding the two large items, profit attributable to shareholders would have been HK$1,235 million, a decrease of 6%[41][42] - Net interest income grew by 11% due to improved net interest margin and higher balances of interest-earning assets, despite subdued demand in core loan markets[44] - Operating profit before impairment charges of the banking business increased by 61%, largely driven by the gain on the termination of the previous insurance distribution agreement[44] - Excluding the gain on the termination of the insurance distribution agreement, operating profit before impairment increased by 2%, while non-interest income decreased by 27%[44] - Gross premiums written for the insurance business increased by 12%, despite challenging market conditions in Hong Kong and Macau[43] - Credit impairment losses increased by 115% to HK$803 million, primarily due to deteriorating credit quality in the corporate banking sector, especially in mainland China's real estate industry[45] - Retail banking loan balances remained stable, with average loan volume increasing by 4% in 2022 compared to 2021[45] - Net interest margin increased by 13 basis points due to efforts to control funding costs and faster repricing of asset yields compared to deposit costs[45] - Overall loan balances contracted by 5%, mainly driven by a 9% contraction in corporate banking loan balances[45] - Overall loan balances contracted by 5%, driven mainly by a 9% decline in corporate banking loan balances, while retail banking loan balances grew by 4%[46] - Net interest margin increased by 13 basis points due to controlled funding costs and faster asset yield repricing compared to deposit costs[46] - Non-interest income decreased by 27% excluding gains from the termination of an insurance distribution agreement, with FX-related revenues remaining stable but wealth management revenues weakened[47] - Credit impairment losses surged by 115% to HK$803 million, primarily due to exposures in Mainland China's real estate sector[48] - The company's share of net profit from its associate, Bank of Chongqing, decreased to HK$657 million, with a total impairment charge of HK$1,683 million for the year[49][52] - Gross premium income for non-life insurance business increased by 12%, despite poor economic conditions in Hong Kong and Macau[50][53] - The total return of the combined insurance and group investment portfolios was negative 10.6% for the year[50][53] - Dah Sing Bank's Common Equity Tier 1 ratio improved to 15.2%, up 1% from 2021, and its consolidated capital adequacy ratio reached 19.3%[51][54] - Dah Sing Bank maintained a Liquidity Maintenance Ratio of 50.4%, well above the minimum requirement of 25%[51][54] - Operating profit before credit impairment losses increased by 55.0% to HK$3,829.5 million in 2022 compared to 2021[70] - Profit attributable to shareholders decreased by 10.5% to HK$1,171.4 million in 2022[70] - Total assets grew by 1.3% to HK$259,847 million in 2022[70] - Net interest margin improved to 1.85% in 2022 from 1.72% in 2021[74] - Operating income increased by 26.8% to HK$6,826.3 million in 2022[74] - Customer loans decreased by 5.4% to HK$136,530 million in 2022[74] - Total deposits increased by 6.4% to HK$204,021 million in 2022[74] - Cost to income ratio improved to 44.2% in 2022 from 56.1% in 2021[74] - Profit attributable to shareholders decreased by 2.9%, while operating income increased by 26.8% driven by higher net interest income and asset yields[75] - Net fee and commission income surged by 87.8% due to the one-off recognition of unamortised fee from the termination of the HKDA with Tahoe Life[75] - Credit impairment charges increased by 115.1% year-on-year, primarily due to higher provisions for credit losses in the China property developer sector[76] - DSBG's return on shareholders' funds decreased from 5.7% in 2021 to 5.4% in 2022, while the cost-to-income ratio improved from 56.1% to 44.2%[76] - The consolidated Common Equity Tier 1 ratio strengthened to 15.2% in 2022, up from 14.2% in 2021, with an overall capital adequacy ratio of 19.3%[76] - Personal Banking deposits grew mildly in 2022, with VIP Banking customer base achieving double-digit growth[78][82] - Outstanding personal loans increased by 3% compared to the end of 2021, supported by digital platform growth and improved credit approval processes[81] - Digital transaction volume surged by 46% year-on-year, driven by the launch of enhanced e-banking platforms and video banking services[83] - The company completed the digitization of branch network customer processes, achieving a "paperless" banking workflow by the end of 2022[83] - The bank maintained a network of 41 retail branches in Hong Kong, including 27 VIP Banking centers and 11 SME centers as of December 2022[83] - Digital transactions surged by 46% year-on-year by the end of 2022[84] - The company recognized a one-time fee and commission income of HK$1,394 million due to the termination of the HKDA with Tahoe Life, significantly boosting Personal Banking's operating income and net profit[86][88] - Corporate Banking reported a net decrease in loan balances, with shortfalls mainly in trade finance and term loans, partially offset by an increase in syndicated loans[90] - Treasury and Global Markets division's attributable profit increased by 19% to HK$598 million, with net interest income growing by 23% to HK$918 million and net interest margin rising from 0.94% to 1.03%[94][95] - The company completed the digitalization of customer processes across its branch network, achieving a 'paperless' banking process[85] - Corporate Banking's net interest income was slightly lower than the prior year due to a contraction in loan volume, partially offset by an improved deposit margin[91] - Loan impairment charges substantially increased, with higher provisions made largely against exposures to the Mainland real estate sector[91] - The company continued to collaborate with DSB China, enabling corporate customers in China to open Hong Kong bank accounts without traveling across the border[91] - Investment in digital solutions and upgrading the digital banking platform DS-Direct remained a priority, enhancing customer experience[91] - The company was awarded the "Best SME's Partner Award" for the 10th consecutive year and won the Gold Award this year[93] - Treasury revenue increased by HK$14.3 million to HK$100.1 million, with credit impairment charges rising to HK$36.4 million from HK$15.5 million due to a higher credit investment portfolio[96][98] - The average Liquidity Maintenance Ratio for the Treasury improved to 50%, up from 47% in the previous year[99] - Banco Comercial de Macau (BCM) saw a 15.1% year-on-year growth in customer deposits, outperforming the market, while loan balances decreased by 2.4%[102][103] - BCM's net interest income increased by 4.9% compared to 2021, driven by higher Prime Rates and an enlarged treasury portfolio, but non-interest income dropped by 27.2%[104] - BCM's loan impairment charges increased significantly due to additional provisions for a China property developer customer group and other non-performing loans[104] - BCM successfully onboarded a significant number of new-to-bank customers and VIP Banking customers, positioning it well for future opportunities[104] - BCM maintained operational efficiency during COVID-19 disruptions, including branch renovations and the establishment of a Streamlining Task Force[105] - BCM implemented customer-centric initiatives, such as experience exchanges and staff recognitions, resulting in positive staff reception and customer satisfaction[107] - DSB China maintained robust capital levels despite challenging conditions, including city-wide lockdowns and rising interest rates, preparing for economic recovery in 2023[108] - DSB China maintained a net interest margin of 1.8% in 2022, close to the 2021 level, despite challenging market conditions and intensified competition[111][112] - DSB China's loan and deposit balances decreased due to difficult market conditions, leading to a reduction in operating profit compared to 2021[111][112] - DSB China's non-performing loans increased in 2022, driven by higher credit risk in the real estate sector and weaker asset quality across multiple industries[111][112] - DSB China successfully re-established its Shenzhen Branch and became the first Hong Kong-incorporated bank to obtain a dual banking license, supporting future growth in the Greater Bay Area[111][113] - Bank of Chongqing's profit attributable to shareholders increased by 4.4% in 2022, with loan and deposit growth of 10.9% and 13.0% respectively[114][115] - Bank of Chongqing's non-performing loan ratio increased to 1.38% at the end of 2022, compared to 1.30% at the end of 2021, while its non-performing loan coverage ratio decreased to 211% from 274%[114][115] - Bank of Chongqing issued A-share convertible corporate bonds and undated capital bonds in 2022, raising a total of RMB13 billion and RMB4.5 billion respectively to strengthen its capital base[114][115] - The Group's share of Bank of Chongqing's net profit was HK$657 million in 2022, but a total impairment charge of HK$1,683 million was recognized due to a lower Value in Use assessment[116][117] - The Group's general insurance business recorded a net profit of HK$14 million in 2022, down from HK$65 million in 2021, with net insurance premium and other income decreasing to HK$484 million from HK$500 million[120] - The company's general insurance business recorded a 12% year-on-year increase in gross premiums written in 2022, while net premium earned saw a mild decline due to cautious underwriting decisions[121] - The general insurance business incurred an overall investment loss of HK$393 million in 2022, largely recognized as other comprehensive loss, correlating with market performance[121] - The net asset value of the general insurance business dropped by 9% in 2022, following steady growth in the prior two years, primarily due to negative investment returns[124][125] - DSI (Dah Sing Insurance) achieved a 25% growth in topline revenue in 2022, driven by improved operational efficiency and digitalization efforts[128] - DSI maintained a strong solvency ratio of 1,549% in 2022, up from 1,327% in 2021, supporting continued business growth in Hong Kong and Macau[124][125] - MIC (Macau Insurance) reported a solvency ratio of 1,167% in 2022, slightly down from 1,205% in 2021, but remained robust[124] - The company's general insurance business reduced operating expenses by 3% in 2022, despite higher staffing and marketing costs, due to investments in IT platforms and systems[121] - DSI's A.M. Best Financial Strength Rating of "A-" (Excellent) and Long-Term Issuer Credit Rating of "A-" were reaffirmed in 2022, with a stable outlook[130] - Macau general insurance and pension fund operations saw a contraction in premium turnovers due to economic recession and city lockdowns, impacting both operating and investment performance in 2022[131][132] - Gross premiums through agency channels grew by 18% year-on-year despite the recessionary environment[133] - The combined ratio for Macau insurance remained healthy at 91% due to disciplined underwriting and proactive claims management[133] - Macau insurance's solvency ratio was reaffirmed with an "A-" (Excellent) Financial Strength Rating and Long-Term Issuer Credit Rating by A.M. Best[134] - Pension management business saw a 7% contraction in Assets Under Management and a 17% shortfall in net profit due to weaker investment markets[134] - The Group implemented Expected Credit Loss (ECL) models to assess impairment provisions, considering macroeconomic factors and forward-looking elements[138] - The Group strengthened internal controls by establishing dedicated control officers in major divisions and conducting end-to-end process reviews[140] - An internal training program was launched in 2022 to enhance staff awareness on climate risk and green and sustainable banking initiatives[141] - The Group's banking subsidiaries maintained a Common Equity Tier 1 capital base of HK$26,268 million in 2022, up from HK$24,354 million in 2021[142] - The Common Equity Tier 1 capital adequacy ratio increased to 15.2% in 2022 from 14.2% in 2021[142] - The total capital base after deductions rose to HK$33,227 million in 2022, compared to HK$31,106 million in 2021[142] - The liquidity maintenance ratio averaged 50.4% in 2022, up from 46.9% in 2021[142] - The Group's total number of employees increased from 3,014 in 2021 to 3,047 by the end of 2022[149] - The Group launched its first 'Culture Week' in June 2022 to promote its 'Culture & Values'[147] - A culture survey was conducted in October 2022, with encouraging participation and responses[147] - The Group introduced an independent rating for non-financial performance in 2019, in addition to financial performance ratings[148] - The Group provided various support arrangements for employees during the COVID-19 pandemic, including flexible working hours and one-off anti-pandemic subsidies[150] - The Group's Employee Value Proposition (EVP) was rolled out in 2019, with the motto "NOT JUST A BANK, A HOME"[148] - The Board of Directors is responsible for setting and overseeing the objectives and strategies of the Group, approving annual budgets and business plans, and monitoring performance and execution of plans[158] - The Board ensures effective risk governance, internal control systems, and ESG-related strategy and risk management[158] - As of 31 December 2022, the Board comprised 9 Directors and 1 Alternate Director, including Executive Directors, Non-Executive Directors, and Independent Non-Executive Directors to ensure independence and objectivity in decision-making[159] - The Board has delegated day-to-day responsibilities to Management and certain matters to committees, while retaining oversight of key areas such as senior management appointments and major acquisitions or disposals[158] - The Company has applied and complied with the Corporate Governance Code under the Hong Kong Listing Rules, except for code provision F.2.2, as explained in the relevant section[155] - The company has 1 Non-Executive Director (NED) and 5 Independent Non-Executive Directors (INEDs), all of whom have confirmed their independence as required under Rule 3.13 of the Listing Rules[165] - The Chairman and Chief Executive roles are held separately by Mr. David Shou-Yeh Wong and Mr. Hon-Hing Wong (Derek Wong) respectively, ensuring a clear distinction between leadership and day-to-day management[164] - Board meetings are held at least 4 times each year at approximately quarterly intervals, with additional meetings as necessary[165] - The Chairman meets with INEDs annually without the presence of other Directors and management staff to facilitate open and frank discussions[170] - Directors may seek independent professional advice at the company's expense, and such requests will not be unreasonably denied[168] - The company maintains appropriate insurance cover for legal action against its Directors[168] - The governance framework and mechanisms are regularly reviewed to ensure effectiveness in maintaining a strong independent element on the Board[169] - INEDs are selected based on criteria including time commitment, cultural and educational background, professional experience, and qualifications[169] - Dissenting views of Directors on any matters discussed at Board/committees' meetings are properly recorded in the minutes[170] - The company has complied with Rule 3.10(1) and (2) and 3.10A, ensuring a sufficient number of INEDs with appropriate professional qualifications and experience[165] - The Board reviewed and discussed the Corporate Governance Report of 2021 and the Environmental, Social, and Governance (ESG) Report of 2021[171] - Management confirmed the effectiveness of the Group's risk management and internal control systems[171] - The Board reviewed amendments to the Corporate Governance Code and related action items[171] - The Board reviewed changes in the composition of the Board and Board Committees[171] - The Board reviewed the Group's progress in ESG development and strategy[171] - The Company adopted a Directors' Dealing Code, and all Directors confirmed compliance with the Model Code and the Directors' Dealing Code for the year ended 31 December 2022[177] - The Board conducted an annual review of the Board Governance Policy and Procedures, Shareholders Communication Policy, and updated the Board Diversity Policy[176