STANCHART-渣打集团(02888) - 2024 - 中期财报

Financial Performance - Operating income increased by 6% to $4.8 billion, with a 7% increase on a constant currency basis[7] - Net interest income rose by 6% to$ 2.6 billion, driven by short-term hedging and optimization in treasury operations[7] - Non-net interest income grew by 9% to $2.2 billion, with wealth management business up 27%[7] - Pre-tax profit before exceptional items reached$ 1.8 billion, a 15% increase on a constant currency basis[7] - Basic earnings per share rose by 23.5 cents or 31% to 98.5 cents[10] - The pre-tax profit rose by 21% year-on-year to $4 billion, supported by effective cost control[12] - The company reported a strong financial performance for the first half of 2024, with basic operating income increasing by 13% to 99.58 billion HKD[22] - The total revenue for the first half of 2024 was$ 9,958 million, compared to $8,951 million in the same period of 2023, reflecting a growth of 11.2%[72] Credit and Impairment - Credit impairment charges amounted to$ 73 million, including $146 million related to wealth management and retail banking[7] - Credit impairment charges increased by 77 million to 249 million, reflecting normalization in wealth management and retail banking[9] - Credit impairment charges totaled HKD 249 million, a 45% increase compared to the previous year, with significant increases in first and second stage impairments[37] - The annualized loan loss rate for the first half of the year was 18 basis points, reflecting a stable credit environment[29] - Credit impairment net reversal amounted to$ 35 million, due to slight new impairments being offset by reversals from prior provisions and sovereign rating upgrades[57] - The total credit impairment for the first half of 2024 was projected at 40 million, with a recovery of 130 million from previously written-off amounts[179] Capital and Shareholder Returns - Common equity tier 1 capital ratio improved to 14.6%, above the target range of 13-14%[7] - The company announced a $1.5 billion share buyback program, expected to reduce the common equity tier 1 capital ratio by approximately 60 basis points[7] - Interim ordinary share dividend increased by 50% to$ 0.09 per share, equivalent to $230 million[7] - The board announced an interim ordinary share dividend of HKD 0.09 per share, a 50% increase from the previous dividend, and initiated a new share buyback plan of HKD 1.5 billion following a previous buyback of HKD 1 billion[25] - The tangible shareholder equity return is projected to steadily rise from 10% in 2023 to 12% by 2026[22] Wealth Management - Wealth management business grew by 25%, with new sales netting over 13 billion, and assets under management increased by 12% to 1,350 billion[9] - Wealth management attracted a net inflow of$ 23 billion in the first half of the year, moving towards a target of $80 billion[16] - Wealth solutions revenue surged by 25%, supported by the launch of new innovative products and a strong increase in new client accounts[30] Deposits and Loans - Customer loans and advances totaled$ 276 billion, a decrease of $8 billion or 3% since March 31, 2024[7] - Customer deposits increased by$ 9 billion or 2% to $468 billion since March 31, 2024[7] - Total deposits increased by 8% to HKD 1.816 billion, driven by higher deposit volumes and effective management of transfer rates in a rising interest rate environment[30] - Customer loans and advances decreased by 3% to 275,896 million, down from 283,403 million in the previous quarter[44] Economic Outlook - The global economic growth is projected at 3.1% for the year, with Asia expected to grow by 5.1% in 2024[18] - The company expects net interest income to reach between 100 billion and 102.5 billion in 2024[9] - The expected loan loss rate is normalizing towards the historical range of 30 to 35 basis points[52] Risk Management - The group is actively managing risks associated with high interest rates and inflation, particularly in the real estate sector in China[86] - The group is closely monitoring sovereign risks in emerging markets across Asia, Africa, and the Middle East due to geopolitical and macroeconomic challenges[85] - The company maintains a diversified investment portfolio across products and regions, monitoring geopolitical and macroeconomic risks[109] Digital Banking - The digital bank Mox in Hong Kong has approximately 600,000 customers, with revenue rising nearly 20% in the first half of the year[16] - Digital banking revenue increased by 77% to HKD 62 million, reflecting ongoing investments in digital transformation despite an overall loss in venture capital business[33] Operational Efficiency - The cost-to-income ratio improved by 4 percentage points to 57%, with positive income growth outpacing expense increases[26] - The liquidity coverage ratio improved to 148%, up from 145%[10] - The company aims to save approximately$ 1.5 billion through the "Efficiency Gain" program over the next three years[14] Employee Engagement and Development - Over 70% of employees have signed up for flexible work arrangements, indicating a focus on productivity, collaboration, and well-being[123] - The company provides online learning platforms to help employees enhance skills and undergo reskilling[121] - The company has an internal talent marketplace allowing employees to participate in projects for diverse experiences and career opportunities[123]