东亚银行(00023) - 2023 - 中期财报

Financial Performance - Operating profit before impairment losses for the half year ended June 30, 2023, was HK$ 5,688 million, an increase of 53% compared to HK$ 3,712 million for the same period in 2022[2] - Profit attributable to owners of the parent for the half year ended June 30, 2023, was HK$ 2,636 million, up 76% from HK$ 1,499 million in the previous year[2] - Basic earnings per share increased to HK$ 0.87 for the half year ended June 30, 2023, compared to HK$ 0.39 for the same period in 2022[2] - Total comprehensive income for the half year ended June 30, 2023, was HK$ 1,901 million, compared to a loss of HK$ 1,561 million in the same period of 2022[9] - The net profit after impairment losses for the first half of 2023 was HK$ 3,190 million, compared to HK$ 1,576 million in the same period of 2022, representing a significant increase of 102.0%[80] - Total operating income for the six months ended June 30, 2023, was HK$ 10,276 million, an increase from HK$ 8,118 million in the same period of 2022, representing a growth of 26.6%[80] - Net interest income for the half year ended June 30, 2023, was HK$ 8,045 million, an increase from HK$ 5,830 million in the previous year[7] - The cost-to-income ratio improved to 44.7% for the half year ended June 30, 2023, compared to 54.3% for the same period in 2022[2] - The annualised return on average assets increased by 30 basis points to 0.5%, and the annualised return on average equity increased by 2.6 percentage points to 4.8%[196] Assets and Liabilities - Total assets as of June 30, 2023, were HK$ 872,069 million, down from HK$ 908,211 million at the end of 2022[3] - Total loans and advances to customers and trade bills decreased to HK$ 533,077 million as of June 30, 2023, from HK$ 554,443 million at the end of 2022[3] - Customer deposits decreased to HK$625,722 million, down from HK$648,093 million, a reduction of about 3.4%[10] - Total liabilities as of June 30, 2023, were HK$764,750 million, down from HK$776,479 million at the end of 2022, reflecting a decrease of 1.5%[80] - The total amount of investment securities measured at amortized cost was HK$ 13,407 million as of June 30, 2023, down from HK$ 14,462 million at the end of 2022[54] - The total amount of investment securities measured at fair value through other comprehensive income (FVOCI) was HK$ 141,062 million as of June 30, 2023[54] Impairment and Provisions - Impairment losses on financial instruments rose to HK$2,492 million for the six months ended June 30, 2023, compared to HK$2,136 million for the same period in 2022, indicating a 16.7% increase[39] - Specific provisions made on advances overdue for more than 3 months were HK$ 1,378 million[177] - The total impairment allowances for debt investment securities increased from HK$ 672 million at the beginning of the year to HK$ 711 million by June 30, 2023, highlighting ongoing credit concerns[144] - The net remeasurement of impairment allowances for loans and advances to customers resulted in a total adjustment of HK$ 2,313 million as of June 30, 2023, indicating a substantial impact from credit quality changes[141] Dividends and Shareholder Returns - The bank paid ordinary dividends of HK$457 million, a decrease from HK$925 million in the previous year[16] - The interim dividend declared was HK$0.36 per share on 2,664 million shares, totaling HK$959 million, compared to HK$0.16 per share on 2,689 million shares, totaling HK$430 million in the previous year[22] - The bank executed a share buy-back of 17,840,200 shares at a total consideration of HK$184 million during the first half of 2023[12] Operational Efficiency - Total operating expenses increased to HK$4,588 million for the six months ended June 30, 2023, from HK$4,406 million in the same period of 2022, representing a 4.1% increase[38] - The wealth management segment generated operating income of HK$499 million in the first half of 2023, compared to HK$487 million in the same period of 2022, indicating a modest growth of 2.5%[80] - The restructuring of operations included regrouping the MPF business into the Personal Banking segment, which may enhance operational efficiency moving forward[83] Market and Economic Conditions - The bank's interest received increased to HK$18,710 million, compared to HK$9,736 million in the same period last year[16] - The bank's cash and cash equivalents at June 30, 2023, were HK$98,866 million, down from HK$120,646 million at the beginning of the year[16] - The Group has transitioned to alternative reference rates (ARRs) following the phase-out of LIBORs, ensuring operational capability to manage remaining rates[161]