东亚银行(00023) - 2020 - 中期财报

Financial Performance - Operating profit before impairment losses for the half year ended 30 June 2020 was HK$4,124 million, a decrease of 22% from HK$5,283 million in the same period of 2019[4]. - Profit attributable to owners of the parent increased to HK$1,532 million, up 53% from HK$1,000 million in the previous year[4]. - Basic earnings per share rose to HK$0.39, compared to HK$0.22 for the same period last year, reflecting a 77% increase[9]. - Total comprehensive income for the period was HK$1,321 million, down from HK$2,443 million in the previous year[10]. - The bank reported a profit for the period of HK$1,532 million, a decrease from HK$2,879 million in the previous year[13]. Income and Expenses - Net interest income for the half year was HK$6,114 million, down 17.6% from HK$7,423 million in the same period of 2019[8]. - Non-interest income decreased to HK$2,360 million, a decline of 15% from HK$2,778 million in the previous year[8]. - Total operating expenses decreased to HK$4,350 million for the six months ended June 30, 2020, down from HK$4,918 million in the same period of 2019, reflecting cost control measures[38]. - The bank's operating expenses for the first half of 2020 were HK$2,225 million, up from HK$2,178 million in 2019, reflecting an increase of 2.1%[86]. Loans and Advances - Total loans and advances to customers decreased to HK$512,308 million from HK$524,107 million in the previous year, a decline of 2%[5]. - Loans and advances to customers decreased to HK$496,372 million, down from HK$505,336 million, a reduction of about 1.9%[11]. - The total gross carrying amount of loans and advances to customers at amortised cost was HK$501,465 million, with impairment allowances of HK$5,093 million[136]. - The total advances to customers reached HK$501,465 million, with overdue advances for over three months at HK$3,442 million[59]. Impairment and Asset Quality - Impairment losses on financial instruments were HK$2,675 million, compared to HK$5,063 million in the same period last year, indicating a reduction in losses[8]. - The impairment allowances for loans and advances to customers increased from HK$3,769 million as of 31/12/2019 to HK$5,093 million as of 30/6/2020[48]. - The Group's 12-month expected credit loss (ECL) for loans and advances to customers was HK$878 million as of June 30, 2020, up from HK$502 million at December 31, 2019, indicating a significant increase of 75%[167]. Capital and Equity - The Common Equity Tier 1 capital ratio improved to 16.5%, up from 15.3% in the previous year, indicating stronger capital position[5]. - Total equity attributable to owners of the parent decreased to HK$92,697 million from HK$95,307 million, a decline of approximately 2.7%[11]. - Total capital of The Bank of East Asia, Limited reached HK$103,213 million as of June 30, 2020, up from HK$98,625 million at the end of 2019[197]. - The total capital ratio rose to 22.1% as of June 30, 2020, from 20.4% at the end of 2019[197]. Customer Deposits - Total customer deposits decreased to HK$611,229 million, down 5% from HK$646,008 million in the previous year[5]. - Deposits from customers reached HK$552,558 million, with demand deposits at HK$63,932 million and savings deposits at HK$156,921 million[90]. Cash and Liquidity - Net cash outflow from operations was HK$ (2,962) million for the six months ended June 30, 2020, compared to a cash inflow of HK$12,797 million for the same period in 2019[14]. - Cash and cash equivalents at June 30, 2020, were HK$95,148 million, down from HK$101,357 million at the same time last year[14]. - Cash and balances with banks decreased from HK$51,534 million as of 31/12/2019 to HK$40,462 million as of 30/6/2020, representing a decline of approximately 21.5%[44]. Investments and Securities - The total investment securities amounted to HK$160,526 million, with debt securities at HK$125,185 million[64]. - The total carrying amount of debt investment securities measured at FVOCI was HK$133,128 million, with impairment allowances of HK$285 million[158]. - The total carrying amount of trading debt securities at fair value increased to HK$462 million as of June 30, 2020, from HK$90 million at December 31, 2019, marking a substantial increase of over 400%[165]. Future Outlook - The bank's future outlook includes a focus on enhancing digital banking services and expanding its market presence in Mainland China[88].