东亚银行(00023) - 2023 - 中期业绩

Financial Performance - Net interest income increased to HKD 8,045 million from HKD 5,830 million, a growth of 38%[1] - Service fee and commission income rose to HKD 1,807 million, up 3.2% from HKD 1,751 million[1] - Trading profit net increased to HKD 645 million, a 46.3% rise from HKD 441 million[1] - Total operating income grew to HKD 10,276 million, up 26.6% from HKD 8,118 million[1] - Profit before tax surged to HKD 3,323 million, an 84.4% increase from HKD 1,802 million[1] - Net profit for the period rose to HKD 2,638 million, a 74.7% increase from HKD 1,510 million[1] - Basic earnings per share increased to HKD 0.87 from HKD 0.39, a 123% rise[1] - Net profit attributable to shareholders for the first half of 2023 was HKD 2.337 billion, compared to HKD 1.090 billion in the same period last year, representing a significant increase[8] - Basic earnings per share for the first half of 2023 were HKD 0.87, calculated based on a weighted average of 2.677 billion shares, compared to HKD 0.39 in the same period last year[8] - Net profit attributable to shareholders increased by 75.8% to HKD 2.636 billion in the first half of 2023, compared to HKD 1.499 billion in the same period last year[150] - Net interest income rose by 38.0% to HKD 8.045 billion, driven by higher interest rates and a widened net interest margin from 1.42% to 2.03%[150] - Total operating income increased by 26.6% to HKD 10.276 billion, with a cost-to-income ratio improving by 9.6 percentage points to 44.7%[152] - Hong Kong business pre-tax profit surged by 177.2% in H1 2023, driven by a 68.4% increase in net interest income and a 76 basis points expansion in net interest margin[158] - Retail banking net interest income rose by 117.1%, with retail deposits increasing by 5.2% and customer loans growing by 2.0% compared to December 2022[161] - Wholesale banking saw a 5.8% rise in pre-provision operating profit, with net interest income growing by 2.0% and non-interest income increasing by 15.7%[162] - East China's net profit increased from HKD 2 million to HKD 136 million year-on-year, driven by economic recovery and policy support[165] - Net interest income in East China rose by 5.6% year-on-year to HKD 2.057 billion, with net interest margin increasing by 28 basis points to 2.07%[165] - Non-interest income in East China grew by 18.5% year-on-year to HKD 590 million, driven by wholesale and personal banking[165] - Overseas business saw a 48.2% year-on-year increase in pre-provision operating profit to HKD 1.036 billion, despite economic challenges[168] Assets and Liabilities - Total assets decreased to HKD 872,069 million from HKD 882,825 million, a 1.2% decline[3] - Customer loans and advances decreased to HKD 526,235 million from HKD 542,394 million, a 3% drop[3] - Total liabilities decreased to HKD 764,750 million from HKD 776,479 million, a 1.5% decline[3] - Total equity as of June 30, 2023, was HKD 107,319 million, compared to HKD 106,346 million at the beginning of the year[4] - Cash and cash equivalents decreased by HKD 11,545 million to HKD 98,866 million as of June 30, 2023[6] - Total assets for the Hong Kong business stood at HKD 548,422 million as of June 30, 2023[66] - Total liabilities for the Hong Kong business amounted to HKD 484,930 million as of June 30, 2023[66] - The company's total assets across all segments reached HKD 872,069 million as of June 30, 2023[66] - Total liabilities across all segments were HKD 764,750 million as of June 30, 2023[66] - Total assets amounted to HKD 882.825 billion, with cash and bank balances at HKD 54.579 billion[69] - Customer loans and advances totaled HKD 542.394 billion, with HKD 202.555 billion due in over 1 to 5 years[69] - Investment securities stood at HKD 147.007 billion, with HKD 64.709 billion due in over 1 to 5 years[69] - Total liabilities were HKD 776.479 billion, with customer deposits at HKD 648.093 billion[69] - Total assets decreased slightly by 1.2% to HKD 872.069 billion, while customer loans decreased by 3.2% to HKD 531.617 billion[153] - Customer deposits decreased by 3.5% to HKD 625.722 billion, with current and savings accounts declining by 19.0% and 10.5%, respectively[153] Loans and Advances - Customer loans and advances decreased to HKD 526,235 million from HKD 542,394 million, a 3% drop[3] - Total customer loans and advances decreased to HKD 531,617 million as of 30/6/2023 from HKD 549,014 million as of 31/12/2022, with a reduction in impairment allowances from HKD 6,620 million to HKD 5,382 million[35] - Loans used in Hong Kong totaled HKD 259,109 million as of 30/6/2023, with 78.41% being secured, compared to HKD 261,051 million and 78.07% secured as of 31/12/2022[37] - Loans used in mainland China decreased to HKD 157,955 million as of 30/6/2023 from HKD 173,525 million as of 31/12/2022, with secured loans dropping from 24.37% to 23.08%[39] - Loans used outside Hong Kong and mainland China totaled HKD 109,446 million as of 30/6/2023, with 51.34% being secured, compared to HKD 109,328 million and 53.16% secured as of 31/12/2022[40] - Property development loans in Hong Kong decreased to HKD 34,436 million as of 30/6/2023 from HKD 36,872 million as of 31/12/2022, with secured loans dropping from 59.19% to 57.57%[37] - Property investment loans in Hong Kong remained stable at HKD 51,411 million as of 30/6/2023 compared to HKD 52,366 million as of 31/12/2022, with secured loans slightly decreasing from 92.57% to 91.75%[37] - Financial enterprise loans in Hong Kong decreased to HKD 14,402 million as of 30/6/2023 from HKD 14,892 million as of 31/12/2022, with secured loans dropping from 67.56% to 62.49%[37] - Impaired loans in property development decreased to HKD 6,494 million from HKD 8,114 million, with special provisions at HKD 1,653 million and overall provisions at HKD 300 million[41] - Impaired loans in property investment increased to HKD 5,214 million from HKD 3,325 million, with special provisions at HKD 1,193 million and overall provisions at HKD 103 million[41] - Total customer advances in Hong Kong amounted to HKD 263,013 million, with impaired advances at HKD 3,863 million and special provisions at HKD 1,173 million[44] - Total customer advances in Mainland China amounted to HKD 175,262 million, with impaired advances at HKD 9,260 million and special provisions at HKD 2,509 million[44] - Total investment securities measured at amortized cost amounted to HKD 13,963 million, with impairment provisions of HKD 556 million[46] - Investment securities measured at fair value through other comprehensive income totaled HKD 141,062 million[46] - The fair value of equity securities designated at fair value through other comprehensive income was HKD 892 million, with dividend income of HKD 17 million[48] - The company's investment in AFFIN Bank Berhad had a recoverable amount of HKD 3,602 million, with no additional impairment loss recognized[49] - The discount rate sensitivity analysis shows that a decrease of 50 basis points increases the value by HKD 240 million to HKD 3,842 million, while an increase of 50 basis points decreases the value by HKD 215 million to HKD 3,387 million[51] - A 10% increase in projected cash flow increases the value by HKD 360 million to HKD 3,962 million, while a 10% decrease reduces the value by HKD 360 million to HKD 3,242 million[51] - The long-term growth rate sensitivity analysis indicates that a 50 basis points increase raises the value by HKD 28 million to HKD 3,630 million, while a 50 basis points decrease lowers the value by HKD 26 million to HKD 3,576 million[51] - The total fixed assets as of June 30, 2023, amounted to HKD 20,990 million, with investment properties at HKD 5,144 million and leasehold improvements at HKD 7,875 million[52] - The net book value of fixed assets as of June 30, 2023, was HKD 13,320 million, with investment properties contributing HKD 5,144 million and leasehold improvements contributing HKD 5,587 million[52] - The company recorded a revaluation loss of HKD 22 million on investment properties during the first half of 2023[52] - The total fixed assets as of December 31, 2022, were HKD 21,037 million, with investment properties at HKD 5,166 million and leasehold improvements at HKD 8,064 million[53] - The net book value of fixed assets as of December 31, 2022, was HKD 13,476 million, with investment properties contributing HKD 5,166 million and leasehold improvements contributing HKD 5,775 million[53] - The company recorded a revaluation loss of HKD 179 million on investment properties during 2022[53] - The total depreciation and impairment charges for fixed assets as of June 30, 2023, amounted to HKD 7,670 million[52] - Accrued interest increased to HKD 3,683 million as of 30/6/2023, up from HKD 3,537 million at 31/12/2022[54] - Acceptances and other liabilities rose to HKD 29,259 million as of 30/6/2023, compared to HKD 27,796 million at 31/12/2022[54] - Other items under other assets increased to HKD 10,405 million as of 30/6/2023, up from HKD 8,094 million at 31/12/2022[54] - Total book value of financial liabilities designated at fair value through profit or loss decreased to HKD 22,983 million as of 30/6/2023, down from HKD 24,357 million at 31/12/2022[55] - Accrued interest payable increased to HKD 5,421 million as of 30/6/2023, up from HKD 4,155 million at 31/12/2022[59] - Contract liabilities under HKFRS 15 amounted to HKD 2,321 million as of 30/6/2023, down from HKD 2,476 million at 31/12/2022[59] - Total borrowing capital increased to HKD 15,753 million as of 30/6/2023, up from HKD 11,927 million at 31/12/2022[60] - The fair value of financial liabilities designated at fair value through profit or loss was HKD 294 million lower than the contractual amount at maturity as of 30/6/2023, compared to HKD 428 million lower at 31/12/2022[58] - The company issued USD 500 million subordinated notes with a 6.75% interest rate on 15/3/2023, maturing on 15/3/2027[62] - The company's Hong Kong operations are divided into five reportable segments: Personal Banking, Wholesale Banking, Treasury Markets, Wealth Management, and Other Businesses[64] - Hong Kong business reported a net interest income of HKD 4,614 million and non-interest income of HKD 1,554 million for the first half of 2023[66] - Mainland business contributed HKD 2,648 million in operating income and HKD 976 million in operating profit before impairment losses for the first half of 2023[66] - International business recorded HKD 1,406 million in operating income and HKD 1,013 million in operating profit before impairment losses for the first half of 2023[66] - Total assets for the Hong Kong business stood at HKD 548,422 million as of June 30, 2023[66] - Total liabilities for the Hong Kong business amounted to HKD 484,930 million as of June 30, 2023[66] - The company's total assets across all segments reached HKD 872,069 million as of June 30, 2023[66] - Total liabilities across all segments were HKD 764,750 million as of June 30, 2023[66] - The company reported a total operating income of HKD 10,276 million for the first half of 2023[66] - Total operating expenses for the first half of 2023 were HKD 4,588 million[66] - The company's profit before tax for the first half of 2023 was HKD 3,323 million[66] - Net interest income for Personal Banking reached HKD 1,221 million, while non-interest income was HKD 676 million[67] - Wholesale Banking reported net interest income of HKD 1,393 million and non-interest income of HKD 327 million[67] - Total operating income for the Hong Kong business was HKD 4,485 million, with operating expenses of HKD 2,537 million[67] - The Mainland business recorded a net interest income of HKD 1,948 million and non-interest income of HKD 498 million[67] - Total assets for the Hong Kong business amounted to HKD 549,134 million, with total liabilities of HKD 487,111 million[67] - Customer loans and advances totaled HKD 526,235 million, with HKD 188,653 million due in more than 1 year to 5 years[68] - Investment securities amounted to HKD 157,887 million, with HKD 61,561 million due in more than 1 year to 5 years[68] - Total customer deposits reached HKD 625,722 million, with HKD 442,517 million in fixed and notice deposits[68] - The company's total assets stood at HKD 872,069 million, while total liabilities were HKD 764,750 million[68] - The net gap between assets and liabilities was HKD 211,487 million for the period of more than 1 year to 5 years[68] - Total assets amounted to HKD 882.825 billion, with cash and bank balances at HKD 54.579 billion[69] - Customer loans and advances totaled HKD 542.394 billion, with HKD 202.555 billion due in over 1 to 5 years[69] - Investment securities stood at HKD 147.007 billion, with HKD 64.709 billion due in over 1 to 5 years[69] - Total liabilities were HKD 776.479 billion, with customer deposits at HKD 648.093 billion[69] - Deferred tax assets decreased to HKD 1.390 billion as of June 30, 2023, from HKD 1.623 billion at the end of 2022[70][71] - Retained earnings increased to HKD 34.982 billion as of June 30, 2023, compared to HKD 33.365 billion at the end of 2022[72] - Regulatory reserves restricted the company's distributable reserves to HKD 2.071 billion as of June 30, 2023, up from HKD 1.742 billion at the end of 2022[73] - Additional Tier 1 capital instruments remained stable at HKD 10.090 billion as of June 30, 2023[74] - Issued USD 650 million (equivalent to HKD 5.021 billion after deducting issuance costs) of Additional Tier 1 Capital Instruments with a 5.825% annual interest rate until the first call date on October 21, 2025[75] - Cash and cash equivalents decreased to HKD 98.866 billion as of June 30, 2023, compared to HKD 120.146 billion as of June 30, 2022[77] - Cash and balances at banks with original maturities of 3 months or less decreased to HKD 33.974 billion as of June 30, 2023, from HKD 44.365 billion as of June 30, 2022[77] - Deposits and loans at banks with original maturities of 3 months or less decreased to HKD 57.940 billion as of June 30, 2023, from HKD 65.084 billion as of June 30, 2022[77] - Treasury bills with original maturities of 3 months or less decreased to HKD 4.930 billion as of June 30, 2023, from HKD 10.088 billion as of June