BOC HONG KONG(02388)2024-03-28 08:30Financial Performance - The operating profit reached a new high since the company's listing, amounting to HKD 42,558 million, representing a 22.0% increase from HKD 34,917 million in 2022[3]. - The net profit after tax for the year was HKD 34,857 million, up 28.0% from HKD 27,230 million in the previous year[7]. - Customer loans grew by 3.3% to HKD 1,702.30 billion, while customer deposits increased by 5.3% to HKD 2,503.84 billion, both exceeding market growth rates[7]. - The company proposed a final dividend of HKD 1.145 per share, leading to a total annual dividend of HKD 1.672 per share, a 23.2% increase year-on-year[7]. - The cost-to-income ratio improved to 25.35%, down from 31.26% in 2022, indicating enhanced operational efficiency[4]. - The average return on total assets rose to 0.90%, compared to 0.75% in the previous year, reflecting better asset utilization[4]. - The total assets as of year-end amounted to HKD 3,868,783 million, an increase from HKD 3,666,505 million in 2022[3]. - The company’s return on equity improved to 10.60%, up from 8.50% in 2022, indicating stronger profitability for shareholders[3]. - The loan-to-deposit ratio was reported at 67.99%, slightly down from 69.34% in the previous year, suggesting a stable funding position[4]. - The net operating income before impairment provisions was HKD 65.50 billion, and annual profit was HKD 34.86 billion, reflecting year-on-year growth of 20.8% and 28.0% respectively[12]. Sustainability and Social Responsibility - The company set a target for "operational carbon neutrality" by 2030 and published its first TCFD report, detailing its sustainable development strategy[9]. - The company launched a range of green financial products, including the first government-issued tokenized green bonds and a climate transition ETF for the Greater Bay Area[10]. - The company is committed to social responsibility, sponsoring community initiatives and receiving multiple awards for its contributions to environmental, social, and governance (ESG) efforts[10]. - The balance of green mortgage loans increased approximately 2.7 times compared to the end of 2022, promoting carbon reduction and environmental sustainability[59]. - The group’s green and sustainable development performance-linked loans increased by 76% compared to the end of 2022, with green deposits growing by 20% year-on-year[69]. Risk Management - The company emphasized risk management, receiving recognition as the "Most Resilient Bank in Hong Kong and Asia-Pacific" for four consecutive years and being named the "Second Most Resilient Bank Globally" in 2023[9]. - The company employs a value-at-risk model to measure market risk, using historical data to set risk limits for the group and its subsidiaries[92]. - The group adheres to a robust liquidity risk preference, ensuring stable and sufficient cash sources under normal and stressed conditions[95]. - The company has established a comprehensive mechanism to continuously monitor reputation risk events, aiming to mitigate potential negative impacts[98]. - The group regularly reviews its business strategies in response to the latest market conditions and developments[100]. Digital Transformation and Innovation - The company is expanding its digital financial service capabilities, including improving mobile banking penetration and enhancing online approval and transaction capabilities[8]. - The number of mobile banking customers steadily expanded, with online mortgage applications increasing by 12 percentage points to 59% of total mortgage applications[60]. - The company has integrated over 160 functions in its mobile banking services, including a new one-stop IPO section[83]. - The company has become one of the first financial institutions to offer "Faster Payment" services linked with Thailand's PromptPay system[84]. - The company is actively enhancing its risk management capabilities in Southeast Asia, implementing a strict control principle to manage credit risks[80]. Corporate Governance - The company is committed to maintaining strong corporate governance practices to foster stakeholder trust and long-term growth[121]. - The board includes members with diverse expertise in finance, governance, and risk management, ensuring comprehensive oversight[117][118]. - The company has established a board diversity policy that considers various factors, including gender, age, cultural background, and professional experience[187]. - The board consists of 11 members, with 7 independent non-executive directors, representing 63.6% of the board, exceeding the minimum requirement of one-third as per listing rules[184]. - The company has implemented a zero-tolerance policy towards corruption and bribery, ensuring compliance with all relevant laws and regulations[174]. Market Position and Growth Strategy - The company achieved significant growth in cross-border personal customer numbers and cross-border income, enhancing its market competitiveness and brand reputation[8]. - The group anticipates significant development opportunities due to the national "14th Five-Year Plan" and the deepening construction of the Guangdong-Hong Kong-Macao Greater Bay Area[24]. - The company is actively supporting the "Belt and Road" initiative and the internationalization of the RMB, optimizing its regional brand and customer referral services[8]. - The company plans to enhance regional, comprehensive, and digital financial services, aiming to strengthen its market competitiveness amid global economic uncertainties[11]. - The company is focused on expanding its market presence and enhancing its governance structure through the expertise of its board members[124][126].