Financial Performance - Operating income increased by 6% to 2.6 billion, driven by short-term hedging maturities and treasury business optimization[4] - Wealth solutions business grew by 27% (constant currency basis), with strong growth in new sales and affluent clients[4] - Global banking business increased by 11% (constant currency basis), driven by higher loan and distribution volumes[4] - Operating income increased by 11% to RMB 10 billion, or 13% on a constant currency basis, excluding significant items[5] - Net interest income rose by 5% to RMB 5 billion on a constant currency basis, while non-net interest income increased by 22% to RMB 5 billion, or 16% excluding two significant items[5] - Wealth management assets under management grew by 12% to RMB 135 billion since December 31, 2023[5] - Global banking business increased by 14% on a constant currency basis, driven by higher loan and distribution volumes[5] - Operating income increased by 11% to HKD 9,958 million compared to HKD 8,951 million in the same period last year[7] - Profit before tax attributable to ordinary shareholders rose by 20% to HKD 3,957 million from HKD 3,306 million[7] - Return on tangible equity for ordinary shareholders improved by 200 basis points to 14.0%[7] - Cost-to-income ratio decreased by 453 basis points to 57.0%[7] - Net interest margin (adjusted) increased by 18 basis points to 1.85%[7] - Total assets grew by 2% to HKD 835,427 million from HKD 822,844 million[7] - Total capital ratio improved by 90 basis points to 22.1%[7] - Basic earnings per share increased by 23.5 cents to 98.5 cents[8] - Net asset value per share rose by HKD 170 to HKD 1,683[8] - Tangible net asset value per share increased by HKD 142 to HKD 1,444[8] - The company achieved a 14% return on tangible equity in the first six months of 2024, with revenue increasing by 13% to 4 billion in the first half of 2024[9] - The company's loan-to-deposit ratio stood at 52.6%, with a Common Equity Tier 1 (CET1) ratio of 14.6% in Q2 2024[9] - The company aims to achieve a 5-7% revenue growth over the next three years, targeting an 8-10% growth in cross-border (network) revenue and revenue from financial institution clients and financing activities[9] - The company attracted 80 billion[9] - The company's digital bank Mox in Hong Kong has approximately 600,000 customers, with revenue increasing by nearly 20% in the first half of 2024[9] - The company's "Efficiency and Growth" program aims to save approximately 1.5 billion share buyback program and increased its interim dividend by 50% to 9 cents per share, bringing total shareholder returns to 1 billion in revenue by 2025[12] - The company announced a share buyback of 2.7 billion[14] - Revenue growth guidance for 2024 has been raised, with expected growth exceeding 7%[14] - The company aims to increase its return on tangible equity from 10% in 2023 to 12% by 2026, with further improvements thereafter[14] - Basic net interest income for the first half of 2024 was 4,979 million, a 19% increase year-over-year[15] - Basic operating income for the first half of 2024 was 3,957 million, a 20% increase year-over-year[15] - Net interest margin increased to 1.85% in the first half of 2024, up from 1.67% in the same period last year[15] - Basic earnings per share for the first half of 2024 were 98.5 cents, a 31% increase year-over-year[15] - Reported net interest income for the first half of 2024 was $3,175 million, a 20% decrease year-over-year[17] - Basic operating income increased by 13% to 10 billion yuan, or 10% on a constant currency basis, excluding the impact of two significant items[18] - Basic net interest income increased by 4%, or 5% on a constant currency basis, benefiting from short-term hedging rollovers and treasury optimization actions[18] - Basic non-net interest income rose by 19%, or 22% on a constant currency basis, with a 16% increase excluding two significant items[18] - Wealth solutions business revenue increased by 25%, supported by new product launches and strong client acquisition[19] - Global banking revenue increased by 14%, driven by strong lending and financial solutions[19] - Global markets revenue rose by 5%, with credit trading and commodities showing strong double-digit growth[19] - Wealth management assets increased by 12% to 135 billion yuan since December 31, 2023[19] - Transaction services revenue increased by 1% to 3,220 million HKD in H1 2024 compared to 3,192 million HKD in H1 2023[20] - Payment and liquidity revenue grew by 3% to 2,300 million HKD in H1 2024 from 2,242 million HKD in H1 2023[20] - Securities and prime services revenue rose by 8% to 294 million HKD in H1 2024 compared to 272 million HKD in H1 2023[20] - Global banking revenue increased by 12% to 960 million HKD in H1 2024 from 858 million HKD in H1 2023[20] - Wealth solutions revenue surged by 23% to 1,234 million HKD in H1 2024 compared to 1,006 million HKD in H1 2023[20] - Adjusted net interest income grew by 5% to 4,991 million HKD in H1 2024 from 4,770 million HKD in H1 2023[23] - Net interest margin improved by 18 basis points to 1.85% in H1 2024 compared to 1.67% in H1 2023[23] - Corporate and investment banking pre-tax profit increased by 5% in H1 2024, driven by a 5% revenue growth[21] - Wealth management and retail banking pre-tax profit rose by 3% in H1 2024, with wealth solutions revenue up 25% to a record high[21] - Central and other items recorded a loss of 252 million HKD in H1 2024, significantly lower than the 824 million HKD loss in H1 2023[22] - Adjusted net interest income increased by 5% YoY, with the average net interest margin for the first half of the year rising by 18 basis points to 185 basis points[24] - Average interest-bearing assets decreased by 4% QoQ, while the total yield increased by 14 basis points to 532 basis points due to improved asset mix and short-term hedging rollovers[24] - Total operating income for the first half of 2024 reached 9,958 million, with Corporate & Investment Banking contributing 5,991 million and Wealth Management & Retail Banking contributing 3,872 million[35] - Pre-tax profit before impairment and taxes for the first half of 2024 was 4,285 million, with Corporate & Investment Banking contributing 3,070 million and Wealth Management & Retail Banking contributing 1,716 million[35] - Total assets as of the first half of 2024 amounted to 835,427 million, with Corporate & Investment Banking holding 443,442 million and Wealth Management & Retail Banking holding 122,846 million[35] - Customer loans and advances totaled 335,707 million, with Corporate & Investment Banking accounting for 190,298 million and Wealth Management & Retail Banking accounting for 120,277 million[35] - Total liabilities as of the first half of 2024 were 784,100 million, with Corporate & Investment Banking holding 467,875 million and Wealth Management & Retail Banking holding 208,565 million[35] - Risk-weighted assets income return for the first half of 2024 was 8.1%, with Wealth Management & Retail Banking achieving a higher return of 14.8%[35] - Tangible equity basic return for the first half of 2024 was 14.0%, with Wealth Management & Retail Banking achieving a higher return of 27.8%[35] - Cost-to-income ratio for the first half of 2024 was 57.0%, with Corporate & Investment Banking at 48.8% and Wealth Management & Retail Banking at 55.7%[35] - Credit impairment for the first half of 2024 was (249) million, with Wealth Management & Retail Banking recording a higher impairment of (282) million[35] - Total customer deposits as of the first half of 2024 were 532,262 million, with Corporate & Investment Banking holding 315,767 million and Wealth Management & Retail Banking holding 204,154 million[35] - Pre-tax underlying profit increased by 5% (on a constant currency basis) to 3,001 million, driven by higher revenue and reduced credit impairment, partially offset by increased operating expenses and other impairments[36] - Underlying operating income rose by 5% (on a constant currency basis) to 5,991 million, with Global Banking growing 14% due to increased lending and distribution volumes, and Global Markets up 5% driven by strong client flow revenues[36] - Credit impairment net reversal of 35 million, primarily due to minimal new impairments and reversals from previous provisions and sovereign rating upgrades[37] - Customer loans and advances increased by 2% (on a constant currency basis) since December 31, 2023, mainly driven by Global Banking's higher lending and distribution volumes[37] - Risk-weighted assets increased by 7 billion to 149,133 million since December 31, 2023, due to asset growth, market risk-weighted assets, and higher operational risk-weighted assets[37] - Tangible equity basic return stood at 21%, broadly flat compared to the first half of 2023[37] - Trading services revenue increased by 2%, with Payments and Liquidity up 3% due to higher interest rates and transaction volumes, and Securities and Prime Services up 10% driven by custody, funding, and prime brokerage fees[36] - Operating expenses increased by 5% (on a constant currency basis), mainly due to inflation and investments in business growth initiatives, including strategic hiring of project managers[36] - Total assets grew by 11% to 443,442 million, with customer loans and advances up 9% to 190,298 million[36] - Cost-to-income ratio increased to 48.8%, up from 48.4% in the previous year[36] - Wealth management and retail banking operating income increased by 10% YoY to HKD 3,872 million, driven by a 25% growth in wealth solutions business[38] - Wealth solutions business revenue rose by 25% YoY to HKD 1,234 million, supported by new affluent client acquisitions and positive net sales of HKD 13 billion[38] - Deposit income increased by 8% YoY to HKD 1,834 million due to higher deposit volumes and improved margin management in a rising interest rate environment[38] - Credit impairment charges surged by 161% YoY to HKD 282 million, reflecting a normalization after reversals in the previous year[38] - Customer loans and advances decreased by 5% YoY to HKD 120,277 million, primarily due to reduced mortgage volumes in Hong Kong and South Korea[38] - Customer deposits grew by 10% YoY to HKD 204,154 million, reflecting a 6% increase on a constant currency basis[38] - Risk-weighted assets increased by 4% YoY to HKD 52,459 million, with a risk-weighted asset return of 14.8%, up 70 basis points[38] - Tangible equity basic return stood at 27.8%, down 40 basis points YoY[38] - Cost-to-income ratio improved by 2.7 percentage points to 55.7%, driven by operational efficiency[38] - Pre-tax basic profit increased by 3% on a constant currency basis to HKD 1,407 million, supported by revenue growth partially offset by higher operating expenses and credit impairments[39] - Operating income decreased by 10% to HKD 80 million in H1 2024, primarily due to reduced earnings from SC Ventures, while digital banking (Mox & Trust) revenue increased by 77%[40][41] - Pre-tax basic loss increased by HKD 41 million to HKD 199 million, reflecting continued investment in digital transformation[41] - Credit impairments rose by 87% to HKD 43 million, mainly driven by Mox expenses, despite improved delinquency rates[40][41] - Customer loans and advances increased by 8% to HKD 1.11 billion, while customer deposits grew by 45% to HKD 4.05 billion, driven by strong growth in Mox and Trust[40][41] - Total assets increased by 72% to HKD 5.28 billion, with customer loans and advances up by 17% to HKD 1.11 billion[40] - Total liabilities grew by 88% to HKD 4.35 billion, with customer deposits increasing by 95% to HKD 4.05 billion[40] - Risk-weighted assets increased by 11% to HKD 2.13 billion, with a decline in risk-weighted asset income return by 470 basis points to 8.3%[40] - Central and other items segment reported a 103% increase in operating income to HKD 15 million in H1 2024, with treasury business income rising by 102% to HKD 10 million[42] - Pre-tax basic loss in the central and other items segment improved by 69% to HKD 252 million, with restructuring costs of HKD 39 million[42] - Total assets in the central and other items segment decreased by 13% to HKD 263.86 billion, with customer loans and advances down by 29% to HKD 24.02 billion[42] - Pre-tax basic loss was HKD 25.2 million, which is slightly less than one-third of the loss in the previous period, driven by increased revenue and reduced operating expenses and impairments, partially offset by a 35% decrease in income from associates, mainly due to reduced profits from Bohai Bank[43] - Basic operating income increased by HKD 532 million year-on-year to HKD 15 million, with treasury business income rising by HKD 415 million to HKD 10 million, primarily due to foreign exchange revaluation gains from positions in Egypt and short-term hedging rollovers[43] - Other income increased by HKD 117 million to HKD 5 million, mainly due to hyperinflation accounting adjustments related to Ghana[43] - A loss of HKD 174 million related to the sale of the Zimbabwe business, primarily due to foreign exchange losses reclassified from reserves to the income statement, with no impact on tangible equity or capital[43] - Group operating income reached HKD 9,958 million, with Hong Kong contributing HKD 2,303 million, Singapore HKD 1,302 million, and other regions HKD 2,999 million[44] - Group operating expenses totaled HKD 5,673 million, with the highest expenses in Hong Kong at HKD 992 million and other regions at HKD 1,615 million[44] - Pre-tax basic profit/loss for the group was HKD 3,957 million, with Hong Kong contributing HKD 1,206 million and the UK recording a loss of HKD 349 million[44] - Total assets employed by the group amounted to HKD 835,427 million, with customer loans and advances totaling HKD 335,707 million[44] - Total liabilities employed by the group were HKD 784,100 million, with customer deposits accounting for HKD 532,262 million[44] - In the first half of 2024, India's operating income was HKD 657 million, with pre-tax basic profit of HKD 204 million[44] - Total basic operating income for Q2 2024 was 4,806 million, a decrease of 6.7% compared to Q1 2024's 5,152 million[45] - Transaction services revenue in Q2 2024 was 1,605 million, slightly down from 1,615 million in Q1 2024[45] - Payment and liquidity revenue in Q2 2024 was 1,139 million, a decrease of 1.9% from 1,161 million in Q1 2024[45] - Global markets revenue in Q2 2024 was 796 million, a significant drop of 23.5% from 1,041 million in Q1 2024[45] - Wealth solutions revenue in Q2 2024 was 618 million, showing a slight increase from 616 million in Q1 2024[45] - Profit attributable to equity holders in H1 2024 was 2,369 million, a 1% decrease compared to 2,385 million in H1 2023[45] - Basic earnings per share for H1 2024 were 83.3 cents, up 7.
渣打集团(02888) - 2024 - 中期业绩