中银香港(02388) - 2024 - 中期业绩

Financial Performance - The net operating income before impairment provisions for the first half of 2024 was HKD 35,336 million, an increase of 14.5% compared to HKD 30,838 million in the same period of 2023[3]. - Operating profit for the first half of 2024 reached HKD 25,134 million, up 15.0% from HKD 21,817 million in the previous year[3]. - Profit attributable to shareholders for the first half of 2024 was HKD 20,040 million, representing a year-on-year increase of 13.2% from HKD 17,694 million[5]. - Basic earnings per share for the first half of 2024 were HKD 1.8954, compared to HKD 1.6077 in the same period of 2023[3]. - The total profit for the first half of 2024 was HKD 20.463 billion, representing a year-on-year increase of HKD 2.381 billion or 13.2%[9]. - The company reported a pre-tax profit for the six months ending June 30, 2024, of HKD 24,716 million, an increase of 15.9% compared to HKD 21,523 million for the same period in 2023[179]. Operational Efficiency - The cost-to-income ratio improved to 22.98% in the first half of 2024, down from 25.46% in the previous year, indicating better operational efficiency[6]. - The overall operating expenses decreased to HKD 8.121 billion from HKD 8.755 billion in the previous half-year, reflecting improved cost management[9]. - Operating expenses for the first half of 2024 amounted to HKD 8.12 billion, an increase of HKD 2.69 billion or 3.4% year-on-year[19]. Asset Quality - The impaired loan ratio was 1.06%, remaining better than the market average, reflecting stable asset quality[6]. - The impairment loan ratio increased to 1.06% from 1.05% at the end of 2023, primarily due to a decline in customer loan ratings, resulting in an increase in impaired loans by HKD 3.00 billion to HKD 18.097 billion[29]. - The total amount of loans overdue for more than six months was HKD 7,714 million as of June 30, 2024, which is 0.45% of total customer loans, compared to HKD 4,101 million or 0.24% as of December 31, 2023[113]. Capital and Liquidity - The total capital ratio stood at 22.17% as of June 30, 2024, maintaining a strong capital position[7]. - The liquidity coverage ratio averaged 223.79% in the first quarter and 250.58% in the second quarter of 2024, exceeding regulatory requirements[7]. - The common equity tier 1 capital ratio stood at 20.05%, an increase from 19.02% at the end of 2023, driven by earnings growth in the first half of 2024[32]. Market Outlook - The company expects continued economic recovery in Hong Kong, supported by improved external demand and various large-scale events scheduled for the second half of 2024[9]. - The company anticipates that the Federal Reserve may begin to lower interest rates as early as September 2024, which could further support the banking sector's growth[9]. Customer Engagement and Digital Services - The number of customers using digital banking services grew steadily, with significant increases in mobile banking users and transaction volumes for various services[38]. - The "Property Expert" mobile app reached over 180,000 downloads, with online mortgage applications accounting for 80.7% of total applications, a year-on-year increase of 29.3 percentage points[38]. - The bank's RMB fund sales increased by over 20% year-on-year, with RMB insurance business maintaining a leading market position, achieving a 50% year-on-year growth in new standard premium in Q1 2024[40]. Risk Management - The company emphasizes the importance of good risk management as a key element for success, balancing risk control with business development[62]. - The risk management framework covers all business development processes to ensure effective management and control of various risks[63]. - The company has established a credit risk management system that includes independent reviews and assessments for significant credit applications[64]. Regulatory Compliance - The group has been classified as an important subsidiary of the Bank of China and is required to meet internal loss-absorbing capacity regulations starting January 1, 2023[82]. - The group conducts regular stress tests to assess risk exposure under extreme adverse economic conditions, with results monitored by the Asset and Liability Management Committee[83]. Financial Instruments and Investments - The fair value of financial assets measured at amortized cost for securities investments was HKD 178.40 billion as of June 30, 2024, down from HKD 202.95 billion as of December 31, 2023, indicating a decrease of approximately 12.1%[166]. - The total amount of financial assets measured at fair value through profit or loss was HKD 192,194 million as of June 30, 2024, compared to HKD 151,891 million at the end of 2023[184]. Taxation and Dividends - The actual tax expense for the first half of 2024 was HKD 4,253 million, resulting in an effective tax rate of 17.2%, up from 16.0% in the first half of 2023[179]. - The interim dividend declared for the first half of 2024 is HKD 0.570 per share, totaling approximately HKD 6,026 million, compared to HKD 0.527 per share and HKD 5,572 million in the first half of 2023[181].