Core Points - Guangdong JianKe disclosed the issuance of approximately 105 million shares on August 3, with a final allocation of 43.96 million shares for offline issuance, accounting for 60% of the total issuance after deducting the final strategic placement [1] - The online issuance amounted to approximately 29.3 million shares, representing 40% of the total issuance after deducting the final strategic placement [1] - The final online subscription rate was 0.0235656875%, with an effective subscription multiple of approximately 4243.46 times [1]

第 1 頁 共 10 頁 v 1.1.1 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年7月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 大新銀行集團有限公司 | | | 呈交日期: | 2025年8月1日 | | | I. 法定/註冊股本變動 不適用 | | | FF301 III.已發行股份及/或庫存股份變動詳情 (A). 股份期權（根據發行人的股份期權計劃） 不適用 第 3 頁 共 10 頁 v 1.1.1 FF301 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02356 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | ...

Group 1 - The core viewpoint of the news is that the bank maintains a neutral outlook on US stocks, expecting only one rate cut by the end of the year, and has downgraded sovereign and investment-grade corporate bonds to "neutral" [1][2] - The Federal Reserve decided to keep the federal funds rate unchanged at a target range of 4.25%-4.5%, marking the first time since 1993 that two members voted against the decision [1] - The Fed's assessment of the US economy has been downgraded, indicating a slowdown in economic activity during the first half of the year, contrasting with previous statements describing steady expansion [1] Group 2 - The impact of the trade war on US inflation and overall economic activity remains unclear, and with the job market stable, the likelihood of a rate cut in September is low [2] - The bank notes that major central banks are expected to slow their rate-cutting pace, and concerns about fiscal outlook are rising, leading to a downgrade of sovereign and investment-grade corporate bonds to neutral [2] - Despite the recent rise in US stocks supported by strong performance from leading tech companies, valuations are significantly high, and the opportunity for US stocks to outperform other markets in the short to medium term is limited [2]

Core Insights - The Cross-Border Payment System has expanded to 17 banks in Hong Kong within a month of its launch, enhancing connectivity between mainland China's online payment system and Hong Kong's Fast Payment System [1][2] - The system offers advantages over traditional cross-border remittances, including instant transfers, simplified documentation, lower costs, and ease of use [1] - The initial participating banks include six from mainland China and six from Hong Kong, with an additional eleven Hong Kong banks recently added to the system [1][3] Summary by Category Participating Institutions - The first batch of participating mainland banks includes: Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and China Merchants Bank [1][3] - The first batch of participating Hong Kong banks includes: Bank of China (Hong Kong), Bank of East Asia, China Construction Bank (Asia), Hang Seng Bank, HSBC, and ICBC (Asia) [1][3] - The second batch of newly added Hong Kong banks includes: CMB Wing Lung Bank, Shanghai Commercial Bank, CITIC Bank International, Chuangxin Bank, Dah Sing Bank, Guangfa Bank, China Everbright Bank, Nanyang Commercial Bank, ZA Bank, Airstar Bank, and MOX Bank [1][3] Digital Banking Inclusion - This expansion marks the first inclusion of digital banks in the Cross-Border Payment System, with MOX Bank, ZA Bank, and Airstar Bank being notable participants [2][3] User Experience and Limitations - Some newly added banks have not yet officially opened cross-border payment services to customers, leading to mixed experiences among users [4] - The system supports bilateral currency and RMB cross-border remittance between mainland China and Hong Kong, with specific limits on transaction amounts [4][5] Transaction Limits - For northbound transactions, the limit is set at HKD 10,000 per person per day and HKD 200,000 per year, while southbound transactions are subject to an annual foreign exchange limit of USD 50,000 [4][5]

Financial Performance - Shareholders' funds increased from HK$ 32,578 million in 2023 to HK$ 33,512 million in 2024, representing a growth of 2.86%[7] - Profit attributable to shareholders rose from HK$ 1,860 million in 2023 to HK$ 2,060 million in 2024, marking an increase of 10.75%[7] - Basic earnings per share improved from HK$ 1.32 in 2023 to HK$ 1.47 in 2024, reflecting a growth of 11.36%[7] - Total dividend distribution increased from HK$ 843 million in 2023 to HK$ 928 million in 2024, an increase of 10.06%[7] - The group's profit attributable to shareholders in 2024 increased by 11% to HK$2,060 million, driven by higher net interest and non-interest income[72] - Profit for the year increased by 10.8% to HK$2,060.3 million in 2024, up from HK$1,860.3 million in 2023[89] Asset and Liability Management - Total deposits decreased from HK$ 209,662 million in 2023 to HK$ 205,863 million in 2024, a decline of 1.43%[7] - Total assets decreased from HK$ 260,744 million in 2023 to HK$ 256,339 million in 2024, a decline of 1.54%[7] - The total liabilities, including subordinated notes, decreased from HK$ 227,855 million in 2023 to HK$ 222,516 million in 2024, a decline of 2.00%[7] - The loan to deposit ratio for 2024 is 67.2%, slightly down from 68.2% in 2023[7][8] - Advances to customers (excluding trade bills) decreased from HK$ 143,049 million in 2023 to HK$ 138,374 million in 2024, a decrease of 3.68%[7] Income and Revenue Growth - Operating income rose by 17.2% to HK$6,934.9 million in 2024, compared to HK$5,916.1 million in 2023[89] - Operating profit before credit impairment losses grew by 30.9% to HK$3,594.9 million in 2024[89] - Net interest income rose by 10%, reflecting the impact of elevated interest rates and effective funding cost management[73] - The net interest margin increased to 2.17% in 2024 from 2.01% in 2023[85] - The bancassurance business achieved robust growth, with fee and net commission income increasing by 53%[74] Credit and Impairment Management - Credit impairment provisions were increased against Mainland China property developers and the Hong Kong Commercial Real Estate sector[70] - Credit impairment charges surged by 145.0% year-on-year, attributed to higher provisions for credit losses related to exposures in the Mainland China property developer sector and Hong Kong commercial real estate sector[99] - The share of net profit from the Bank of Chongqing was HK$677 million for 2024, with an impairment loss of HK$16 million, a decrease of 97% from 2023[75] Governance and Leadership - The company has a strong board with members having extensive experience in banking, finance, and corporate governance[26][27][28][30] - The leadership team has a diverse background, contributing to the company's adaptability in the financial sector[30] - The company is committed to leveraging its board's expertise to navigate market challenges and opportunities[30] - The company continues to strengthen its governance with the appointment of experienced independent directors[39] 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[122] - The bank's Private Banking business recorded strong year-on-year growth through improved personalized service models and cross-selling initiatives[121] - The bank's strategy includes gradually renovating and relocating branches to enhance customer service and digital experience, while transitioning to paperless operations[123] Market and Economic Conditions - Domestic consumption expenditure fell by 0.6% in 2024 despite a 30% rise in inbound visitors[91] - The total export of goods increased by 8.7% in 2024, recovering from a 7.8% drop in 2023[90] - The Corporate Banking business reported negative loan growth in 2024, primarily due to a decline in trade finance[133] Employee Development and Corporate Culture - The average training hours per employee increased in 2024 compared to 2023, reflecting the Group's commitment to employee development[193] - Four themed weeks focusing on staff wellness, Culture and Values, Employee Value Proposition (EVP), and customer experience were organized to enhance staff awareness[194] - The Group's employee turnover rate improved significantly in 2024 compared to 2023, indicating effective talent management strategies[197] Capital Adequacy and Liquidity - The consolidated Common Equity Tier 1 ratio of Dah Sing Bank increased to 16.9% as of December 31, 2024, up from 16.2% at the end of 2023[106] - The liquidity maintenance ratio averaged 64.2% for the year 2024, showing a marginal increase from 64.0% in 2023[186] - Stress testing on capital and liquidity positions is regularly conducted, with results reviewed periodically by management and reported to the Board-level Risk Management and Compliance Committee[189]

Core Viewpoint - Dah Sing Bank Group reported a significant increase in credit impairment losses, which raised concerns among investors despite a year-on-year increase in net profit [1][2]. Financial Performance - The company reported a net profit attributable to shareholders of HKD 2.06 billion, representing a year-on-year growth of 10.8% [1]. - Net interest income for 2024 was HKD 5.288 billion, up 9.8% year-on-year [2]. - Non-interest income, specifically net service fees and commission income, surged by 53.3% to HKD 1.328 billion [2]. - Operating profit before impairment losses increased by 31%, driven by a 50% rise in non-interest income and stable operating costs [2]. Credit Impairment Losses - Credit impairment losses skyrocketed by 145% to HKD 1.791 billion, primarily attributed to customer loans and advances [1][2]. - The bank indicated that the property-related loan market in Hong Kong and mainland China faced ongoing challenges, contributing to the increase in impairment losses [2]. - The bank's property investment loans were approximately HKD 23 billion, down 3% year-on-year, while property development loans decreased by 7% to about HKD 6.4 billion [2]. Market Conditions - The demand for loans in the market has stagnated, leading to weak loan growth [2]. - The bank's management noted that the non-performing loan ratio for local commercial real estate remains at a controllable level, but the commercial real estate market is developing slowly, with expectations of continued declines in loan amounts this year [2].

Financial Performance - Net interest income for the year ended December 31, 2024, increased by 9.8% to HK$5,288,117,000 compared to HK$4,815,435,000 in 2023[4] - Service fee and commission income rose by 53.3% to HK$1,328,609,000 from HK$866,802,000 year-on-year[4] - Total operating income grew by 17.2% to HK$6,934,923,000, up from HK$5,916,084,000 in the previous year[4] - Profit attributable to shareholders for the year was HK$2,060,347,000, reflecting a 10.8% increase from HK$1,860,306,000 in 2023[4] - Basic earnings per share increased to HK$1.47 from HK$1.32, while diluted earnings per share rose to HK$1.37 from HK$1.23[4] - The operating profit before credit impairment losses for 2024 was HKD 3,594,873 thousand, up from HKD 2,747,187 thousand in 2023, reflecting a growth of approximately 30.9%[19] - The annual profit for the year ended December 31, 2024, was HKD 2,060,347 thousand, an increase from HKD 1,860,306 thousand in 2023, representing a growth of about 10.7%[19] - The company reported a pre-tax profit of HKD 2,395,369 thousand for 2024, up from HKD 2,141,578 thousand in 2023, reflecting an increase of about 11.9%[22] - Non-interest income for 2024 was HKD 1,646,806 thousand, compared to HKD 1,100,649 thousand in 2023, marking a substantial increase of approximately 49.8%[19] Credit and Impairment - The company reported a credit impairment loss of HK$1,791,361,000, a significant increase of 145.0% compared to HK$731,311,000 in 2023[4] - Credit impairment losses for 2024 totaled HKD 1,791,361 thousand, compared to HKD 731,311 thousand in 2023, indicating a significant increase of approximately 144.5%[19] - The total impairment provisions for loans and advances increased to HKD 1,532,345 thousand in 2024 from HKD 1,113,256 thousand in 2023, indicating a rise of approximately 37.7%[41] - The stage 3 impairment provision increased to HKD 694,499,000 in 2024 from HKD 228,158,000 in 2023, reflecting a significant rise in credit risk[42] - Total overdue loans as of December 31, 2024, amounted to HKD 3,809,230,000, representing 2.75% of total loans, compared to HKD 2,167,589,000 or 1.51% in 2023[42] Assets and Liabilities - Total assets as of December 31, 2024, amounted to HK$256,339,081,000, a decrease from HK$260,744,094,000 in 2023[6] - The total liabilities as of December 31, 2024, were HKD 222,515,709 thousand, compared to HKD 227,854,651 thousand in 2023, showing a decrease of approximately 2.4%[22] - The total amount of other assets decreased to HKD 4,752,501 thousand in 2024 from HKD 5,141,313 thousand in 2023, a decline of about 7.5%[38] - The total financial assets measured at fair value increased to HKD 44,808,705,000 in 2024, up from HKD 40,525,842,000 in 2023, reflecting a growth of approximately 8.1%[46] - The total debt securities measured at amortized cost decreased to HKD 35,554,370,000 in 2024 from HKD 39,413,306,000 in 2023, a decline of about 9.8%[47] Customer Deposits and Loans - Customer deposits decreased to HK$201,568,051,000 from HK$207,233,698,000 year-on-year[6] - Total customer loans and advances decreased to HKD 138,374,285 thousand in 2024 from HKD 143,049,476 thousand in 2023, representing a decline of approximately 3.7%[38] - The net amount of loans and advances after impairment provisions was HKD 136,841,940 thousand in 2024, down from HKD 141,936,220 thousand in 2023, a decrease of about 3.7%[41] - The total outstanding loans in Hong Kong decreased from HKD 103,611,210,000 in 2023 to HKD 102,052,384,000 in 2024, a decline of approximately 1.5%[52] - The total amount of trade finance loans decreased from HKD 5,624,799,000 in 2023 to HKD 4,902,455,000 in 2024, a decrease of about 12.8%[52] Dividends and Shareholder Returns - The company declared an interim dividend of HK$379,553,000, compared to HK$154,633,000 in the previous year[4] - The final dividend proposed is HKD 0.39 per share, totaling HKD 927.8 million for the year, a 10% increase from HKD 0.60 in 2023[72] Governance and Compliance - The company has adhered to the Corporate Governance Code, except for the provision F.2.2 regarding the attendance of the chairman at the annual general meeting[78] - The company has established a Securities Trading Code for directors, confirming compliance with the Standard Code throughout the fiscal year ending December 31, 2024[79] - The Audit Committee has reviewed the accounting standards and practices, including the consolidated financial statements for the year ending December 31, 2024[80] Future Outlook - The group anticipates continued challenges in the banking sector, particularly regarding credit risk and weak loan growth[77]

Financial Performance - Interest income for the six months ended June 30, 2024, was HK$6,205,704, an increase from HK$5,287,210 in 2023, reflecting a growth of 17.3%[6] - Net interest income rose to HK$2,538,695, up 11.9% from HK$2,269,045 in the previous year[6] - Operating income increased by 22.1% to HK$3,286,757 compared to HK$2,691,406 in 2023[6] - Profit for the period attributable to shareholders was HK$1,396,074, representing a 25.6% increase from HK$1,111,923 in 2023[9] - Basic earnings per share improved to HK$0.99, up from HK$0.79, marking a growth of 25.3%[6] - Total comprehensive income for the period, net of tax, was HK$1,450,192, compared to HK$1,076,603 in 2023, indicating a growth of 34.7%[9] - The net fee and commission income increased significantly by 59.8% to HK$603,386, compared to the previous year[6] - Operating profit before impairment losses rose by 46.1% to HK$1,691,892 from HK$1,158,085 in 2023[6] - The total operating income was HK$3,286,757,000, with operating expenses of HK$1,594,865,000, resulting in an operating profit of HK$1,691,892,000[121] - Profit before taxation for the six months ended June 30, 2024, reached HK$1,579,921, up from HK$1,211,901 in 2023, indicating an increase of about 30%[126] Asset and Liability Management - Total assets as of June 30, 2024, increased to HK$262,372,675, up from HK$260,744,094 as of December 31, 2023, representing a growth of approximately 0.63%[11] - Total liabilities increased slightly to HK$228,739,842 from HK$227,854,651, reflecting a growth of approximately 0.39%[11] - Customer deposits rose to HK$208,143,537, an increase from HK$207,233,698, reflecting a growth of about 0.44%[11] - The balance of cash and balances with banks decreased to HK$13,054,178 from HK$16,395,770, a decline of about 20.5%[11] - Total equity as of June 30, 2024, reached HK$33,632,833, up from HK$32,889,443, marking an increase of approximately 2.25%[11] - The total amount of subordinated notes as of June 30, 2024, was HK$4,109,232, down from HK$5,916,645 as of December 31, 2023, indicating a decrease of 30.5%[83] - The total liabilities stood at HK$228,739,842, with customer deposits being the largest component[104] Credit and Impairment - Credit impairment losses surged by 246.7% to HK$544,007 from HK$156,893 in the previous year[6] - New credit impairment losses for the six months ended June 30, 2024, were HK$544,007, compared to HK$156,893 in 2023, indicating a significant rise in provisions[34] - The total impairment allowances for loans and advances amounted to HK$1,180,190 as of June 30, 2024, compared to HK$1,113,256 as of December 31, 2023, indicating an increase of about 6%[56] - The total expected credit loss (ECL) allowance is HK$1,243,475,000, an increase from HK$1,181,574,000 as of December 31, 2023[69] - The ECL allowance for Stage 1 is HK$404,463,000, for Stage 2 is HK$307,994,000, and for Stage 3 is HK$531,018,000 as of June 30, 2024[69] Cash Flow and Investments - Net cash used in operating activities was HK$ (1,958,962) thousand, compared to HK$ 965,062 thousand in the previous year, indicating a significant decrease[19] - Net cash used in investing activities was HK$ (140,599) thousand, up from HK$ (40,075) thousand in the previous year, reflecting increased investment outflows[19] - Net cash used in financing activities rose sharply to HK$ (2,758,979) thousand from HK$ (645,339) thousand, primarily due to repayment of subordinated notes[19] - Cash and cash equivalents at the end of the period decreased to HK$ 14,017,431 thousand from HK$ 19,425,731 thousand, showing a decline of approximately 28%[19] Segment Performance - Net interest income for the Personal Banking segment was HK$1,094,468, while non-interest income was HK$531,816, contributing to a total operating income of HK$1,626,284,000[121] - The Corporate Banking segment reported net interest income of HK$582,205,000 and non-interest income of HK$103,928,000, leading to total operating income of HK$686,133,000[121] - The Treasury and Global Markets segment achieved net interest income of HK$650,687,000 and non-interest income of HK$21,032,000, totaling HK$671,719,000 in operating income[121] - The Mainland China and Macau Banking segment generated net interest income of HK$230,318,000 and non-interest income of HK$83,682,000, resulting in total operating income of HK$314,000,000[121] Risk Management - The Group's liquidity risk management ensures the ability to meet financial obligations without incurring unacceptable losses[155] - The Group's operational risk is associated with inadequate internal processes and external events, which could lead to direct or indirect losses[155] - The Group's risk management expertise has improved the overall quality of its lending portfolios, enabling it to meet changing regulatory requirements confidently[157] - The Group's expected credit loss (ECL) measurement methodology remains consistent with the audited financial statements for the year ended December 31, 2023, focusing on either a 12-month or lifetime basis depending on credit risk increases[161] - The Group continues to monitor high-risk loan accounts and has updated forward-looking assumptions to reflect market conditions as of June 30, 2024, with scenario weights of 70%, 11%, and 19% for "baseline," "good," and "bad" scenarios respectively[165] Market Conditions and Economic Outlook - The Hong Kong GDP growth rate forecast for the base scenario is 2.4% for 2024, with a good scenario at 7.0% and a bad scenario at -2.3%[173] - The Hong Kong unemployment rate forecast for the base scenario is 2.8% for 2024, with a good scenario at 2.3% and a bad scenario at 4.7%[173] - A 1% increase in unemployment rates would result in an ECL impact of HK$17,194,000 for retail and HK$27,832,000 for corporate as of June 30, 2024[181] - A 0.5% decrease in GDP growth rates would lead to an ECL impact of HK$3,453,000 for retail and HK$5,207,000 for corporate as of June 30, 2024[181]

Financial Performance - The unaudited net profit attributable to shareholders for the six months ended June 30, 2024, is HK$1,396,074,000, representing a 25.6% increase from HK$1,111,923,000 in 2023[2]. - Operating income for the period was HK$3,286,757,000, reflecting a 22.1% increase from HK$2,691,406,000[4]. - Basic earnings per share increased to HK$0.99 from HK$0.79, while diluted earnings per share rose to HK$0.93 from HK$0.75[4]. - The group reported a profit for the period of HKD 1,396,074, after tax expenses of HKD 183,847[44]. - The group’s profit attributable to shareholders increased by 26% to HKD 1.4 billion, with a significant contribution of HKD 430 million from Chongqing Bank[66]. Income and Revenue - Net interest income increased by 11.9% to HK$2,538,695,000 compared to HK$2,269,045,000 in the previous year[4]. - Net service fee and commission income rose significantly by 59.8% to HK$603,386,000 from HK$377,674,000[4]. - Non-interest income surged by 77%, primarily driven by growth in net service fees and commissions[67]. - Total operating income reached HKD 3,286,757, with operating expenses amounting to HKD 1,594,865, resulting in an operating profit before credit impairment of HKD 1,691,892[44]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to HK$262,372,675,000, compared to HK$260,744,094,000 at the end of 2023[8]. - Total liabilities were reported at HKD 228,739,842[44]. - The total equity attributable to shareholders rose to HK$33,632,833,000 from HK$32,889,443,000[8]. - The total amount of credit commitments as of June 30, 2024, was HKD 66,050,022 thousand, down from HKD 68,772,487 thousand as of December 31, 2023, a decrease of 3.95%[41]. Credit and Impairment - Credit impairment losses surged by 246.7% to HK$544,007,000, compared to HK$156,893,000 in the previous year[4]. - The percentage of credit-impaired loans and advances to total customer loans and advances is 1.96%, slightly up from 1.94%[31]. - The total overdue loans and advances as of June 30, 2024, is HKD 2,585,044, representing 1.83% of total loans, compared to 1.51% as of December 31, 2023[32]. - The total impairment provisions for loans and advances is HKD 1,180,190, compared to HKD 1,113,256 as of December 31, 2023[30]. Dividends and Shareholder Returns - The company declared an interim dividend of HK$379,553,000, up from HK$154,633,000 in 2023[4]. - The board declared an interim dividend of HKD 0.27 per share, payable on September 26, 2024[64]. Operational Efficiency - The cost-to-income ratio improved to 48.5% in the first half of 2024, down from 57.0% in the same period last year[64]. - The group continues to focus on prudent risk management and operational efficiency amid economic uncertainties in the first half of 2024[66]. Market and Economic Outlook - The group anticipates that the potential interest rate cuts in Hong Kong may stimulate local demand, although the overall performance will depend on the effectiveness of economic stabilization measures in mainland China and global economic trends[69]. - Loan demand remains weak, leading to a decline in financing needs, but the possibility of interest rate cuts in the coming months may gradually improve the economy and credit conditions[69]. Corporate Governance - The company has complied with the Corporate Governance Code, except for the absence of the chairman at the 2024 Annual General Meeting due to other commitments[70]. - The company has adopted a set of securities trading rules for directors that meet or exceed the standards set out in the Listing Rules[71]. Miscellaneous - The financial data in the interim results announcement is unaudited and does not constitute statutory financial statements[72]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the six-month period ending June 30, 2024[73].

Financial Performance - Net interest income increased by 9.9% to HK$4,815.4 million in 2023 compared to HK$4,383.1 million in 2022[3] - Net fee and commission income decreased by 61.5% to HK$866.8 million in 2023 from HK$2,249.1 million in 2022[3] - Operating income declined by 13.3% to HK$5,916.1 million in 2023 from HK$6,826.3 million in 2022[3] - Profit attributable to shareholders increased by 15.6% to HK$1,860.3 million in 2023 from HK$1,608.8 million in 2022[3] - The Group's total comprehensive income for the year was HK$3,262.5 million in 2023, compared to HK$520.2 million in 2022[4] - The Group's basic earnings per share increased to HK$1.32 in 2023 from HK$1.14 in 2022[3] - Net interest income for 2023 increased to HKD 4,815,435 thousand, up from HKD 4,383,060 thousand in 2022[11][12] - Non-interest income for 2023 was HKD 1,100,649 thousand, compared to HKD 2,443,210 thousand in 2022[11][12] - Operating income for 2023 rose to HKD 5,916,084 thousand, up from HKD 6,826,270 thousand in 2022[11][12] - Operating expenses for 2023 were HKD 3,168,897 thousand, compared to HKD 3,016,010 thousand in 2022[11][12] - Pre-tax profit for 2023 was HKD 2,141,578 thousand, up from HKD 1,969,982 thousand in 2022[11][12] - Net interest income increased to HKD 11,485,605 thousand in 2023 from HKD 6,964,602 thousand in 2022, driven by higher interest income from cash and bank balances, securities investments, and loans[14] - Interest expenses rose to HKD 6,670,170 thousand in 2023 from HKD 2,581,542 thousand in 2022, primarily due to increased bank deposits and customer deposits[14] - Net fee and commission income decreased to HKD 1,078,967 thousand in 2023 from HKD 2,432,747 thousand in 2022, with a significant drop in insurance sales and other fees[15] - Net trading income for 2023 was HKD 164,843 thousand, including gains from foreign exchange transactions and trading securities[16] - Other operating income for 2023 totaled HKD 69,004 thousand, including dividend income from equity investments and rental income[16] - Operating expenses increased to HKD 3,168,897 thousand in 2023 from HKD 3,016,010 thousand in 2022, with higher employee compensation and benefits[17] - Credit impairment losses decreased to HKD 731,311 thousand in 2023 from HKD 803,100 thousand in 2022, with recoveries from previously written-off amounts[17] - Hong Kong profits tax provision for the year is HK$231,268 thousand, a decrease from HK$352,450 thousand in 2022[20] - Mainland China and Macau tax provision for the year is HK$38,320 thousand, slightly up from HK$37,772 thousand in 2022[20] - Basic earnings per share increased to HK$1.32 (2022: HK$1.14) based on profit of HK$1,860,306 thousand[21] - Diluted earnings per share increased to HK$1.23 (2022: HK$1.07) after considering the dilutive effect of associates' profits[21] - Net interest income to operating income ratio increased to 81.4% in 2023 from 64.2% in 2022[59] - Cost-to-income ratio increased to 53.6% in 2023 from 44.2% in 2022[59] - Average return on total assets improved to 0.7% in 2023 from 0.6% in 2022[59] - Average return on shareholders' equity increased to 6.0% in 2023 from 5.4% in 2022[59] - Net interest margin expanded to 2.01% in 2023 from 1.85% in 2022[59] - Loan-to-deposit ratio increased to 68.2% in 2023 from 66.9% in 2022[59] - Proposed final dividend of HKD 0.49 per share for 2023, bringing total annual dividend to HKD 0.60, a 54% increase from HKD 0.39 in 2022[62] - The company's net profit attributable to shareholders increased by 16% to HKD 1.86 billion in 2023[63] - Net interest income rose by 12% due to an expanded net interest margin, which increased by 16 basis points[63] - Total loan balance grew by 5% despite weak loan demand in core markets[63] - Net service fee and commission income grew by 1% after excluding a one-time gain of HKD 1.394 billion in 2022[63] - Credit impairment losses decreased by 9% to HKD 731 million, primarily from corporate banking[63] - The company's share of net profit from its associate, Chongqing Bank, increased to HKD 689 million[64] - Impairment provisions for Chongqing Bank totaled HKD 552 million in 2023, down from HKD 1.683 billion in 2022[64] Assets and Liabilities - Total assets grew to HK$260,744.1 million in 2023, up from HK$252,086.0 million in 2022[5] - Customer deposits increased to HK$207,233.7 million in 2023 from HK$199,792.2 million in 2022[5] - Loans and advances to customers rose to HK$149,113.9 million in 2023 from HK$142,712.6 million in 2022[5] - Total equity increased to HK$32,889.4 million in 2023 from HK$30,225.1 million in 2022[5] - Total assets for 2023 increased to HKD 260,744,094 thousand, compared to HKD 252,086,033 thousand in 2022[11][12] - Total liabilities for 2023 were HKD 227,854,651 thousand, up from HKD 221,860,885 thousand in 2022[11][12] - Depreciation and amortization expenses for 2023 were HKD 349,014 thousand, compared to HKD 380,169 thousand in 2022[11][12] - Trading securities and financial assets at fair value through profit or loss increased significantly to HK$1,748,057 thousand from HK$571,464 thousand in 2022[22] - Notional amount of derivative financial instruments increased to HK$255,691,221 thousand in 2023 from HK$156,556,934 thousand in 2022[23][24] - Total customer loans and advances increased to HK$143,049,476 thousand from HK$136,530,235 thousand in 2022[25] - Impairment allowances for customer loans decreased to HK$1,113,256 thousand from HK$1,636,402 thousand in 2022[25] - Trade bills decreased to HK$2,060,317 thousand from HK$3,666,988 thousand in 2022[25] - Other assets increased to HK$5,141,313 thousand from HK$4,182,559 thousand in 2022[25] - Total customer loans and advances increased to HKD 143,049.5 million in 2023, up from HKD 136,530.2 million in 2022, representing a 4.8% growth[26] - Loans for property development and investment in Hong Kong rose to HKD 23,767.5 million in 2023, accounting for 16.6% of total loans, compared to HKD 21,406.8 million (15.7%) in 2022[26] - Loans for residential property purchases in Hong Kong increased to HKD 34,954.4 million in 2023, making up 24.4% of total loans, up from HKD 33,911.8 million (24.8%) in 2022[26] - Impaired loans and advances decreased to HKD 2,779.6 million in 2023, down from HKD 2,539.0 million in 2022, with the ratio to total loans slightly increasing to 1.94% from 1.86%[28] - Overdue loans for more than 1 year increased significantly to HKD 1,158.2 million (0.81% of total loans) in 2023, compared to HKD 332.5 million (0.25%) in 2022[29] - The fair value of collateral held for impaired loans rose to HKD 1,707.4 million in 2023 from HKD 1,056.1 million in 2022[28] - Trade finance loans decreased to HKD 5,624.8 million in 2023, accounting for 3.9% of total loans, down from HKD 5,752.6 million (4.2%) in 2022[26] - Loans used outside Hong Kong declined to HKD 33,813.5 million in 2023, representing 23.7% of total loans, compared to HKD 35,332.7 million (25.9%) in 2022[26] - Restructured loans and advances increased to HKD 405.8 million (0.28% of total loans) in 2023 from HKD 339.2 million (0.25%) in 2022[31] - The value of repossessed properties more than doubled to HKD 252.7 million in 2023 from HKD 125.3 million in 2022[32] - Total financial assets at fair value through other comprehensive income increased to 40,525,842 thousand HKD in 2023 from 38,617,851 thousand HKD in 2022, with debt securities accounting for 38,764,287 thousand HKD in 2023[33] - Non-listed debt securities saw a significant increase to 12,057,957 thousand HKD in 2023 from 8,590,336 thousand HKD in 2022[33] - Equity securities increased to 1,761,555 thousand HKD in 2023 from 675,314 thousand HKD in 2022, primarily driven by non-listed equity securities[33] - Financial assets at amortized cost rose to 39,413,306 thousand HKD in 2023 from 32,985,496 thousand HKD in 2022, with debt securities being the major component[34] - The company's retained earnings increased to 23,923,181 thousand HKD in 2023 from 22,661,183 thousand HKD in 2022[35] - Regulatory reserves designated by the company increased to 616,530 thousand HKD in 2023 from 438,466 thousand HKD in 2022[36] - Contingent liabilities and commitments decreased to 2,119,544 thousand HKD in 2023 from 2,657,818 thousand HKD in 2022[38] - Assets pledged as collateral for liabilities decreased to 2,397,069 thousand HKD in 2023 from 2,678,069 thousand HKD in 2022[39] - Operating lease commitments as a lessee decreased to 10,259 thousand HKD in 2023 from 16,596 thousand HKD in 2022[40] - Total loans used in Hong Kong increased to HKD 103.61 billion in 2023, up from HKD 95.44 billion in 2022, with the percentage of loans secured by collateral remaining stable at 78.5%[42] - Loans for property investment in Hong Kong rose to HKD 23.77 billion in 2023, with 91.4% secured by collateral, compared to HKD 21.41 billion and 88.0% in 2022[42] - Loans for the purchase of other residential properties in Hong Kong increased to HKD 34.95 billion in 2023, with 99.9% secured by collateral, up from HKD 33.91 billion and 100.0% in 2022[42] - Loans used outside Hong Kong decreased to HKD 33.81 billion in 2023, with 56.8% secured by collateral, down from HKD 35.33 billion and 61.4% in 2022[42] - Impaired loans (Stage 3) for property investment in Hong Kong increased to HKD 470.74 million in 2023, up from HKD 34.30 million in 2022[45] - Impaired loans (Stage 3) for the purchase of other residential properties in Hong Kong rose to HKD 170.94 million in 2023, compared to HKD 81.84 million in 2022[45] - Total exposure to Mainland China business increased to HKD 33.87 billion in 2023, up from HKD 31.21 billion in 2022, with on-balance sheet exposure accounting for 12.89% of total assets[47] - Loans to residents or institutions established in Mainland China increased to HKD 10.86 billion in 2023, up from HKD 9.28 billion in 2022[47] - Loans to other counterparties considered as non-bank customers in Mainland China rose to HKD 10.05 billion in 2023, compared to HKD 9.78 billion in 2022[47] - The total assets of Dah Sing Bank and its Mainland banking subsidiaries after deducting provisions amounted to HKD 242.06 billion in 2023[47] - Total customer loans and advances amounted to 143,049,476 thousand HKD in 2023, with Hong Kong accounting for 119,759,434 thousand HKD, China for 7,546,867 thousand HKD, and Macau for 14,012,453 thousand HKD[51] - Impaired customer loans and advances (Stage 3) totaled 2,779,561 thousand HKD in 2023, with Hong Kong contributing 2,259,148 thousand HKD, China 334,757 thousand HKD, and Macau 185,656 thousand HKD[51] - Overdue customer loans and advances reached 2,167,589 thousand HKD in 2023, with Hong Kong at 1,771,878 thousand HKD, China at 205,675 thousand HKD, and Macau at 185,656 thousand HKD[51] - Stage 3 impairment provisions stood at 485,255 thousand HKD in 2023, with Hong Kong at 422,162 thousand HKD, China at 27,347 thousand HKD, and Macau at 35,746 thousand HKD[51] - Stage 1 and Stage 2 impairment provisions were 628,001 thousand HKD in 2023, with Hong Kong at 552,353 thousand HKD, China at 46,698 thousand HKD, and Macau at 19,272 thousand HKD[51] - International claims totaled 180,501 million HKD in 2023, with offshore centers contributing 158,640 million HKD and developing Asia-Pacific regions at 16,882 million HKD[53] - Spot assets in foreign currencies amounted to 117,955 million HKD in 2023, with USD at 80,496 million HKD, RMB at 16,286 million HKD, and MOP at 10,028 million HKD[55] - Forward purchases in foreign currencies reached 141,301 million HKD in 2023, with USD at 87,748 million HKD, RMB at 31,383 million HKD, and other currencies at 19,741 million HKD[55] - Forward sales in foreign currencies were 166,825 million HKD in 2023, with USD at 110,039 million HKD, RMB at 32,820 million HKD, and other currencies at 22,389 million HKD[55] - Net long/(short) positions in foreign currencies stood at 1,189 million HKD in 2023, with USD at 1,602 million HKD, RMB at (33) million HKD, and MOP at (597) million HKD[55] Capital and Liquidity - Capital adequacy ratio increased to 16.2% for Common Equity Tier 1, 16.9% for Tier 1, and 21.2% for Total Capital as of December 31, 2023, compared to 15.2%, 15.9%, and 19.3% respectively in 2022[57] - Leverage ratio improved to 11.2% as of December 31, 2023, up from 10.6% in 2022[58] - Liquidity maintenance ratio rose to 64.0% in 2023 from 50.4% in 2022[58] - The company's capital adequacy ratio and liquidity remained robust, enabling it to navigate challenges and seize growth opportunities[66] Accounting Standards and Policies - The company adopted new and revised standards including HKAS 1, HKFRS Practice Statement 2, HKAS 8, and amendments to HKAS 12 related to international tax reform, effective from January 1, 2023[7] - The adoption of HKAS 12 amendments related to international tax reform (Pillar Two model rules) may result in additional tax liabilities for the company, with a minimum tax rate of 15%[8] - The company has not adopted certain new and revised standards and interpretations, including amendments to HKAS 1, HKFRS 16, and HKFRS 10, which are not expected to have a significant impact[9] Business Segments - The company's operating segments are categorized into Personal Banking, Corporate Banking, Treasury and Global Markets, and Mainland China and Macau Banking, with revenues allocated based on market-based transfer pricing mechanisms[10] Technology and Digitalization - The company successfully implemented a new core banking system and continued to invest in technology and digitalization[65] - The company expanded its financial planning