东亚银行(00023) - 2024 - 中期业绩

Property Development and Investment - Property development segment saw a decrease in individually impaired loans from HKD 7,581 million to HKD 7,234 million, with special provisions increasing from HKD 2,162 million to HKD 2,282 million[39] - Property investment segment reported a decrease in individually impaired loans from HKD 4,094 million to HKD 3,682 million, with special provisions decreasing from HKD 441 million to HKD 425 million[39] - Total provisions for property development segment decreased from HKD 2,157 million to HKD 1,824 million, while property investment segment provisions increased from HKD 227 million to HKD 443 million[39] Customer Loans and Advances - Total customer loans and advances increased from HKD 532,111 million to HKD 535,310 million, with impaired customer loans decreasing from HKD 14,334 million to HKD 14,016 million[41][42] - Hong Kong region's customer loans and advances decreased from HKD 251,929 million to HKD 240,053 million, with impaired loans increasing from HKD 4,863 million to HKD 4,930 million[41][42] - Mainland China region's customer loans and advances increased from HKD 174,954 million to HKD 189,028 million, with impaired loans decreasing from HKD 8,567 million to HKD 8,209 million[41][42] - The total gross carrying amount of loans and advances was HKD 535,310 million, with a total impairment allowance of HKD 4,917 million as of 30/6/2024[81] - The credit quality analysis revealed that HKD 496,345 million of loans and advances were classified as 'performing' with an expected credit loss (ECL) of HKD 1,673 million, while HKD 14,016 million were classified as 'non-performing' with an ECL of HKD 651 million as of 30/6/2024[81] - The credit risk analysis showed that HKD 9,796 million of loans and advances were classified as 'special mention', HKD 4,391 million as 'substandard', HKD 4,914 million as 'doubtful', and HKD 4,711 million as 'loss' as of 30/6/2024[81] - The collateral market value for impaired loans and advances was HKD 6,259 million as of 30/6/2024[81] - Total customer loans and advances amounted to HKD 532,111 million, with expected credit losses of HKD 24,047 million for non-credit impaired contracts and HKD 14,334 million for credit-impaired contracts[82] - The impairment provision for customer loans and advances was HKD 5,127 million, reducing the carrying amount to HKD 526,984 million[82] - Collateral market value for impaired customer loans and advances was HKD 7,041 million, covering cash, deposits, stocks, bonds, and other tangible assets[82] - The impairment allowance for customer loans and advances decreased from HKD 5,301 million at the beginning of the year to HKD 5,172 million by June 30, 2024, with a significant write-off of HKD 2,892 million during this period[101] - The impairment allowance for customer loans and advances at the end of 2023 was HKD 5,301 million, with a write-off of HKD 6,819 million during the year[102] Investment Securities and Financial Instruments - Investment securities portfolio increased from HKD 167,270 million to HKD 182,899 million, with debt securities increasing from HKD 133,850 million to HKD 148,019 million[43] - Associates and joint ventures investments decreased from HKD 8,384 million to HKD 8,201 million, with an impairment loss of HKD 94 million recognized for a non-listed associate in Mainland China[44] - The recoverable amount of the investment in AFFIN Bank Berhad is HKD 3.287 billion, which is higher than the carrying amount of HKD 2.969 billion, resulting in no additional impairment loss for the period[45] - The discount rate used in the value-in-use calculation for AFFIN Bank Berhad is 11.56%, down from 12.03% as of December 31, 2023[45] - A 50 basis point decrease in the discount rate increases the value-in-use by HKD 225 million, while a 50 basis point increase decreases it by HKD 199 million[46] - A 10% increase in projected cash flows increases the value-in-use by HKD 329 million, while a 10% decrease reduces it by HKD 329 million[46] - The fair value of financial instruments classified as Level 1 (using observable market prices) was HKD 35,524 million as of June 30, 2024, compared to HKD 36,219 million as of December 31, 2023[71] - The fair value of financial instruments classified as Level 2 (using observable inputs) increased to HKD 127,269 million as of June 30, 2024, from HKD 130,596 million as of December 31, 2023[71] - The fair value of financial instruments classified as Level 3 (using unobservable inputs) decreased to HKD 1,377 million as of June 30, 2024, from HKD 1,492 million as of December 31, 2023[71] - The discount rate used in the discounted cash flow model for Level 3 valuations decreased to 10.8% as of June 30, 2024, from 13.4% as of December 31, 2023[72] - The marketability discount for Level 3 valuations remained constant at 20% as of both June 30, 2024, and December 31, 2023[72] - The earnings multiples used in the market comparable approach for Level 3 valuations ranged from 23.45 to 27.89 as of June 30, 2024, compared to 14.38 to 36.36 as of December 31, 2023[72] - The EV/EBITDA multiples used in the market comparable approach for Level 3 valuations ranged from 19.32 to 21.16 as of June 30, 2024, compared to 18.26 to 26.75 as of December 31, 2023[72] - The total fair value of derivative assets decreased to HKD 3,080 million as of June 30, 2024, from HKD 9,056 million as of December 31, 2023[71] - The total fair value of derivative liabilities decreased to HKD 3,037 million as of June 30, 2024, from HKD 4,007 million as of December 31, 2023[71] - The company recorded a net loss of HKD 88 million in the fair value reserve for assets measured at fair value through other comprehensive income during the reporting period[74] - The fair value of financial assets measured at fair value through profit or loss (FVTPL) increased by HKD 42 million, while those measured at fair value through other comprehensive income (FVOCI) increased by HKD 73 million as of 30/6/2024[77] - The fair value sensitivity analysis shows a parallel shift of +/-10% in fair value due to changes in unobservable assumptions, resulting in a HKD 45 million favorable and HKD 45 million unfavorable impact on profit or loss, and HKD 80 million favorable and HKD 80 million unfavorable impact on equity as of 31/12/2023[78] - The fair value of investment securities measured at FVTPL decreased by HKD 10 million, while those measured at FVOCI decreased by HKD 88 million as of 30/6/2024[76] - The total fair value of financial assets measured at FVTPL was HKD 506 million, and those measured at FVOCI was HKD 871 million as of 30/6/2024[76] - The total expected credit loss for debt investment securities measured at amortized cost is HKD 23,743 million, with accrued interest of HKD 237 million[94] - The total expected credit loss for debt investment securities measured at fair value through other comprehensive income is HKD 156,470 million, with accrued interest of HKD 1,543 million[96] - The total expected credit loss for debt investment securities measured at fair value through profit or loss is HKD 152,261 million, with accrued interest of HKD 1,514 million[97] - The total book value of non-trading debt investment securities measured at fair value through profit or loss is HKD 1,879 million as of 30/6/2024[99] - The total book value of trading debt investment securities measured at fair value through profit or loss is HKD 590 million as of 30/6/2024[99] - The total book value of derivative assets is HKD 3,080 million as of 30/6/2024[99] - The total impairment allowance for debt investment securities increased from HKD 882 million at the beginning of the year to HKD 1,037 million by June 30, 2024, driven by a re-measurement gain of HKD 160 million[103] - The impairment allowance for debt investment securities at the end of 2023 was HKD 882 million, with a re-measurement gain of HKD 236 million during the year[104] Fixed Assets and Depreciation - The total fixed assets as of June 30, 2024, amount to HKD 21.296 billion, including investment properties, premises, furniture, fixtures, and equipment[47] - The net book value of fixed assets as of June 30, 2024, is HKD 13.234 billion[47] - The company recorded a revaluation loss of HKD 75 million on investment properties during the period[47] - The total depreciation and impairment of fixed assets as of June 30, 2024, is HKD 8.062 billion[47] - The company added HKD 349 million in fixed assets during the period, including HKD 275 million in premises, furniture, fixtures, and equipment[47] - The company disposed of fixed assets worth HKD 125 million during the period[47] - Total fixed assets increased from HKD 21,037 million as of January 1, 2023, to HKD 21,397 million as of December 31, 2023, reflecting additions and revaluations[48] - Investment properties decreased slightly from HKD 5,166 million to HKD 5,105 million due to revaluation losses and transfers[48] - Accumulated depreciation and impairment of fixed assets increased from HKD 7,561 million as of January 1, 2023, to HKD 7,904 million as of December 31, 2023[48] Liabilities and Deposits - Customer deposits under amortized cost increased from HKD 628,399 million as of December 31, 2023, to HKD 630,109 million as of June 30, 2024[52] - Other liabilities increased from HKD 47,312 million as of December 31, 2023, to HKD 49,010 million as of June 30, 2024, driven by higher accrued interest payable and other items[53] - Financial liabilities designated at fair value through profit or loss decreased significantly from HKD 13,501 million as of December 31, 2023, to HKD 3,831 million as of June 30, 2024[50] - Lease liabilities decreased from HKD 852 million as of December 31, 2023, to HKD 777 million as of June 30, 2024[53] - The fair value of financial liabilities designated at fair value through profit or loss was HKD 34 million lower than their contractual amounts as of June 30, 2024[51] - Contract liabilities under HKFRS 15 decreased from HKD 2.162 billion as of December 31, 2023, to HKD 2.043 billion as of June 30, 2024[53] - The total borrowing capital as of June 30, 2024, was HKD 23,033 million, compared to HKD 15,967 million as of December 31, 2023[54] - The 5-year USD 500 million subordinated notes issued on April 22, 2022, with a coupon rate of 4.875%, had a book value of HKD 3,707 million as of June 30, 2024, down from HKD 3,750 million at the end of 2023[55] - The 10-year USD 600 million subordinated notes issued on May 29, 2020, with a coupon rate of 4%, had a book value of HKD 4,673 million as of June 30, 2024, down from HKD 4,727 million at the end of 2023[55] - The newly issued 10-year USD 650 million subordinated notes on June 27, 2024, with a coupon rate of 6.75%, had a book value of HKD 5,029 million as of June 30, 2024[55] - The 6-year USD 250 million non-preferred loss-absorbing notes issued on July 7, 2022, with a coupon rate of 5.125%, had a book value of HKD 1,872 million as of June 30, 2024, down from HKD 1,899 million at the end of 2023[55] - The 4-year USD 500 million non-preferred loss-absorbing notes issued on March 15, 2023, with a coupon rate of 6.75%, had a book value of HKD 3,889 million as of June 30, 2024, down from HKD 3,942 million at the end of 2023[56] - The newly issued 3-year USD 500 million non-preferred loss-absorbing notes on March 13, 2024, with a coupon rate of 6.625%, had a book value of HKD 3,863 million as of June 30, 2024[56] - The 5-year RMB 1.5 billion subordinated notes issued by the company's subsidiary on April 25, 2019, with a coupon rate of 4.94%, were fully redeemed on April 25, 2024[56] - The company reported no defaults or non-performance on principal and interest payments for its debt securities during the periods ending June 30, 2024, and December 31, 2023[54] - Total customer deposits increased by 0.2% to HKD 6.301 trillion, with savings deposits growing by 6.7% to HKD 79.50 billion[137] Financial Performance and Income - Net interest income for the first half of 2024 increased to HKD 8,228 million, up from HKD 8,045 million in the same period in 2023[58][59] - Non-interest income for the first half of 2024 was HKD 2,256 million, compared to HKD 2,231 million in the first half of 2023[58][59] - Operating expenses for the first half of 2024 rose to HKD 4,813 million, up from HKD 4,588 million in the same period in 2023[58][59] - Profit before tax for the first half of 2024 was HKD 2,730 million, a decrease from HKD 3,323 million in the first half of 2023[58][59] - Total assets as of June 30, 2024, were HKD 875,217 million, compared to HKD 860,361 million as of December 31, 2023[58][59] - Total liabilities as of June 30, 2024, were HKD 765,836 million, up from HKD 752,035 million as of December 31, 2023[58][59] - The Hong Kong business segment's net interest income increased to HKD 684 million in the first half of 2024, up from HKD 456 million in the same period in 2023[58][59] - The China mainland business segment's net interest income decreased to HKD 1,922 million in the first half of 2024, down from HKD 2,061 million in the same period in 2023[58][59] - The international, Macau, and Taiwan business segment's net interest income increased to HKD 1,326 million in the first half of 2024, up from HKD 1,303 million in the same period in 2023[58][59] - The wealth management segment's net interest income decreased to HKD 186 million in the first half of 2024, down from HKD 194 million in the same period in 2023[58][59] - Total assets as of 30/6/2024 amounted to HKD 875,217 million, with cash and bank balances contributing HKD 39,988 million[60] - Customer loans and advances totaled HKD 530,393 million, with HKD 163,714 million due in 1 to 5 years[60] - Total liabilities as of 30/6/2024 were HKD 765,836 million, with customer deposits making up HKD 630,109 million[60] - Total assets as of 31/12/2023 amounted to HKD 860,361 million, with cash and bank balances contributing HKD 45,903 million[61] - Customer loans and advances totaled HKD 526,984 million, with HKD 170,070 million due in 1 to 5 years[61] - Total liabilities as of 31/12/2023 were HKD 752,035 million, with customer deposits making up HKD 628,598 million[61] - The net gap for assets and liabilities as of 30/6/2024 showed a positive gap of HKD 188,346 million for 1 to 5 years[60] - The net gap for assets and liabilities as of 31/12/2023 showed a positive gap of HKD 189,923 million for 1 to 5 years[61] - Net profit attributable to shareholders decreased by 19.9% to HKD 2.111 billion in the first half of 2024 compared to HKD 2.636 billion in the same period of 2023[136] - Basic earnings per share were