恒生银行(00011) - 2023 - 中期业绩

Financial Performance - Shareholder profit increased by 79% to HKD 9.827 billion, compared to HKD 5.505 billion in the first half of 2022[1] - Pre-tax profit rose by 71% to HKD 10.961 billion, up from HKD 6.397 billion in the same period last year[1] - Operating profit increased by 67% to HKD 10.858 billion, compared to HKD 6.491 billion in the first half of 2022[1] - Net operating income before expected credit loss changes increased by 29% to HKD 19.940 billion, from HKD 15.409 billion in the previous year[1] - Return on average ordinary shareholders' equity was 12.8%, up from 7.1% in the first half of 2022[1] - Earnings per share rose by 83% to HKD 4.99, compared to HKD 2.73 in the same period last year[1] - The company declared an interim dividend of HKD 1.10 per share, totaling HKD 2.20 per share for the first half of 2023, compared to HKD 1.40 per share in the previous year[1] - The expected credit loss and other credit impairment charges decreased by 8% year-on-year to HKD 1.924 billion, and by 66% compared to the second half of the previous year[18][21] - The average return on common equity increased to 12.8%, up from 7.1% in the same period last year[19] - The total comprehensive income for the period was HKD 9,814 million, which includes a dividend payout of HKD 5,927 million[45] Income and Revenue Growth - Operating income before expected credit loss changes increased by 29% year-on-year, while profit attributable to shareholders rose by 79%[10] - Net interest income showed strong growth, with a net interest margin increase of 62 basis points to 2.09%[10] - Wealth management income grew by 10% year-on-year and increased by 40% compared to the second half of last year[10] - Non-interest income rose by 55%, driven by strong performance in equity-related wealth sales and new income sources from structured products[16] - Total operating income from wealth management and personal banking in the Greater Bay Area increased by 20%[17] - The company recorded a gain of HKD 6.110 billion from financial instruments measured at fair value, compared to a loss of HKD 18.196 billion in the same period last year[24] - Income from insurance business assets and liabilities measured at fair value reached HKD 5.773 billion, a significant recovery from a loss of HKD 18.545 billion in the previous year[24] - The company reported a significant increase in financial instrument income, netting HKD 6,110 million[34] - The bank's service fee income rose to HKD 4,056 million, an increase of 4.7% from HKD 3,873 million in 2022[42] Cost and Efficiency - The cost-to-income ratio improved to 35.9%, compared to 44.2% in the first half of 2022[1] - The cost-to-income ratio improved by 8.3 percentage points year-on-year, now at 35.9%[10] - Operating expenses increased by HKD 340 million, or 5%, to HKD 7.156 billion, primarily due to continued investment in technology and marketing[27] - The bank aims to enhance operational efficiency and customer experience through ongoing investments in technology[22] Customer and Market Growth - The number of high-end, mass-market, and emerging affluent clients increased by 25% year-on-year[13] - Digital service usage among new customers reached 98%, with active users of mobile finance and digital banking growing by 59% and 22% respectively[15] - The affluent customer base grew by 25% year-on-year, supported by enhanced customer programs and promotional activities[36] - Monthly active users of mobile wealth management services increased by 16% year-on-year, with retail transactions conducted digitally rising by 173%[38] Risk and Credit Quality - The expected credit loss provisions decreased by HKD 1.76 billion to HKD 19.24 billion, reflecting a favorable change in economic outlook and a reduction in total loan balances[22] - The ratio of total impaired loans to total customer loans increased to 2.85% as of June 30, 2023, compared to 1.92% and 2.56% at the end of June and December 2022, respectively[18] - Total impaired loans increased by HKD 1.7 billion to HKD 25.9 billion, with the impaired loan ratio rising to 2.85% from 2.56% at the end of 2022[27] - The expected credit loss ratio on total customer loans increased to 1.59% as of June 30, 2023, compared to 1.42% at the end of 2022[64] Capital and Liquidity - As of June 30, 2023, the common equity tier 1 capital ratio was 16.8%, up from 15.2% at the end of 2022[1] - The liquidity coverage ratio stood at 230.6%, significantly above the regulatory requirement of 100%[18] - The net stable funding ratio was 161.4% as of June 30, 2023, significantly above the regulatory requirement of 100%[32] - The total capital ratio as of June 30, 2023, was 20.0%, up from 18.1% in December 2022[76] Strategic Initiatives - The bank aims to achieve net-zero carbon emissions by 2030 and has launched sustainable finance solutions to assist clients in transitioning to a low-carbon economy[8] - The bank is set to open six cross-border wealth management centers in major cities in the Greater Bay Area, enhancing its service offerings and customer base[20] - The bank launched a new +FUN Dollars credit card rewards program and a simplified mobile wealth management app to enhance customer experience and attract new business[20] - The bank's strategy focuses on strengthening customer relationships and promoting deposit growth amid competitive market conditions[36] Regulatory and Governance - The company adhered to the corporate governance guidelines set by the Hong Kong Monetary Authority and complied with the majority of the best practices outlined in the Corporate Governance Code as of June 30, 2023[101] - The board of directors consists of 10 members, including 6 independent non-executive directors and 4 non-executive directors as of August 1, 2023[102] - The mid-year report for 2023 will be published on the company's website and sent to shareholders by the end of August 2023[103]