Financial Performance - Tangible equity return reached 10.1%, an increase of 240 basis points[4] - Common equity tier 1 capital ratio stood at 14.1%, 10 basis points above the target range of 13–14%[4] - Total shareholder return was 9.4%, compared to 41.4% in 2022[4] - Operating income increased by 10% to 18.019 billion yuan on a reported basis[5] - Pre-tax profit rose by 24% to 5.093 billion yuan on a reported basis[5] - Earnings per share increased by 22.7 cents to 108.6 cents on a reported basis[5] - Tangible net asset value per ordinary share grew by 12% to 13.93 yuan[4] - The company achieved a tangible equity return of 10.1% in 2023, with a target to reach 12% by 2026[40] - Revenue grew by 13% on a constant currency basis in 2023[40] - The company achieved a 13% increase in full-year revenue to 5.7 billion in 2023, reaching the highest level in a decade[48] - The company's cross-border network business revenue increased by 31% in 2023, with significant growth in the Middle East (67%) and ASEAN (53%)[48] - The company's affluent customer base grew to 2.3 million, contributing to a 50% increase in net new money inflows to 1 billion share buyback[57] - Total shareholder return increased by 9.4% in 2023[58] - The company achieved a tangible equity return of 10.1% in 2023, exceeding the 10% target set for 2024[87] - Risk-weighted asset income return improved to 7.8% in 2023, up from 6.2% in 2022[87] - Cost savings of 4 billion were achieved in 2023, bringing the total savings from 2022 to 2023 to 9 billion[87] - The company distributed a total of 27 billion to shareholders in 2023, with cumulative distributions from 2022 to 2023 reaching 45 billion[87] - Pre-tax profit in China grew to 1.3 billion in 2023, a 1.6x increase compared to 2022[87] - The company aims for a 5-7% compound annual growth rate in revenue over the next three years[87] - The cost-to-income ratio improved to 60% in 2023, down from 69% in 2022[87] - The company plans to reduce operating expenses to below 12 billion by 2026[87] - A new 1 billion share buyback program is set to launch in 2024[87] - The company completed the sale of its aircraft financing leasing business in 2023[87] - The company's total assets amounted to 823 billion yuan, with a Common Equity Tier 1 capital ratio of 14.1% at the end of 2023, exceeding the target range of 13-14%[88] - The company's liquidity coverage ratio was 145% and the net stable funding ratio was 138% at the end of 2023[88] - The company paid 4.5 billion yuan to active suppliers in 2023, up from 4.3 billion yuan in 2022[95] - The company paid 1.476 billion yuan in corporate taxes and bank levies in 2023, compared to 926 million yuan in 2022[98] - The company declared dividends of 728 million yuan in 2023, up from 523 million yuan in 2022[98] - The company repurchased shares worth 2 billion yuan in 2023, compared to 1.3 billion yuan in 2022[99] - The company invested in digital channels and customer experience to enter new high-growth segments and increase share of wallet among existing customers[88] - The company launched over 20 new digital wealth management features in 2023 and expanded its SC Women's International Network to five markets[88] - The company's consumer customer satisfaction index improved to 56.6% in 2023 from 49.8% in 2022[88] - The company's active individual customer base grew to 11.8 million in 2023 from 10.4 million in 2022[93] - New business revenue accounted for 36% of total revenue, up from 22% in 2022[113] - Corporate, Commercial & Institutional Banking network revenue reached 6.9 billion, up from 5.2 billion in 2022[114] - Digital-enabled transactions in Corporate, Commercial & Institutional Banking reached 65.7%, up from 61.5% in 2022[115] - Mass retail banking active customers increased to 9.5 million, up from 8.3 million in 2022[115] - Retail product digital sales penetration reached 56%, up from 48% in 2022[115] - Sustainable financing revenue increased to 720 million, up from 508 million in 2022[115] - Affluent client business revenue reached 4.6 billion, up from 3.7 billion in 2022[117] - Active affluent clients increased to 2.3 million, up from 2.1 million in 2022[117] - Cumulative sustainable financing mobilized since 2021 reached 87 billion, up from 57 billion in 2022[118] - Corporate, Commercial & Institutional Banking pre-tax profit increased by 42% to HKD 5.436 billion[123] - Corporate, Commercial & Institutional Banking basic operating income rose by 20% to HKD 11.218 billion[128] - Risk-weighted assets (RWA) for Corporate, Commercial & Institutional Banking decreased by HKD 1.6 billion[126] - Personal, Private & SME Banking pre-tax profit increased by 60% to HKD 2.487 billion[131] - Tawi platform reached over 1,000 farmers and 700 commercial kitchens by the end of 2023[122] - Risk-weighted asset return for Corporate, Commercial & Institutional Banking improved to 7.8% in 2023, up 160 basis points[127] - Financial institutions contributed 49% to total revenue in 2023[127] - Digital adoption rate for Corporate, Commercial & Institutional Banking reached 65.7% in 2023[128] - Sustainable finance mobilization reached HKD 87 billion towards the 2030 target of HKD 300 billion[128] - Tangible equity return for Corporate, Commercial & Institutional Banking increased to 19.5% in 2023[128] - The net new money inflow from affluent clients increased by 50% year-on-year in 2023, reaching 29.1 billion yuan[134] - The digital account opening rate for retail products rose to 56% in 2023, up from 41% in 2021[135] - The company's basic operating income increased by 19% to 7.106 billion yuan, with a 22% increase on a constant currency basis[136] - The tangible equity basic return increased from 15.8% to 25.3%[136] - The total transaction value for the venture business reached 18 billion yuan in 2023[138] - The number of clients in the venture business increased to 1.8 million in 2023, up from 1.3 million in 2022[139] - The company raised 64 million yuan in external funding for its venture business, a 41% increase[138] - The company's pre-tax basic profit increased by 60% to 2.487 billion yuan on a constant currency basis[136] - The company's deposit income grew by 76% on a constant currency basis[136] - The company's wealth management income increased by 10% on a constant currency basis[136] - SC Ventures' customer base increased by 25% to 587,000, with total transaction value rising by 15% to HKD 18 billion[140] - Mox's customer base grew 1.2 times year-over-year to over 523,000, with revenue nearly tripling and deposits and loans both increasing by over 30%[140] - Trust Bank's customer base surged 1.7 times year-over-year to 700,000, with deposit balances increasing 3.0 times to SGD 1.4 billion[140] - SC Ventures established a HKD 100 million digital asset joint venture with SBI Holdings in the UAE[140] - Mox achieved a 36% market share in loans and 30% in deposits among Hong Kong virtual banks[140] - Trust Bank reached a 12% market share within a year of launch and was rated as the best digital retail bank in Singapore and Southeast Asia[140] - Basic pre-tax profit increased by 32% to HKD 4.74 billion, driven by higher income and reduced credit impairment[143] - Customer loans and advances decreased by 5% year-over-year, while customer deposits increased by 9%[143] - Risk-weighted assets increased by HKD 5 billion year-over-year[143] - Tangible equity return rose from 11.9% in 2022 to 16.4% in 2023[143] - The company's pre-tax basic profit reached 2.806 billion, driven by strong growth in cash management, retail deposits, and financial markets[146] - Middle East, North Africa, and Pakistan revenue increased by 29% (38% on a constant currency basis), while Africa revenue grew by 1% (14% on a constant currency basis)[146] - The company recorded a net credit impairment reversal of 119 million in 2022[146] - Customer loans and advances increased by 8% (15% on a constant currency basis) year-on-year, while customer deposits grew by 4% (9% on a constant currency basis)[146] - Risk-weighted assets decreased by 6% compared to December 31, 2022, despite sovereign rating downgrades[146] - Tangible equity return on equity increased from 9.3% in 2022 to 16.6% in 2023[146] - The company's ESG DCM volume in the Middle East grew by over 160% year-on-year, supported by some of the region's largest and most innovative ESG transactions[146] - Cross-border income saw strong growth of 39%, with broad-based growth across all major corridors[146] - The company's cost-to-income ratio improved to 56% in 2023, compared to 63% for the full year 2022[146] - The group achieved a tangible equity return of 10% in 2023, with pre-tax profit increasing by 27% on a constant currency basis[151] - Revenue grew by 13% on a constant currency basis, driven by favorable interest rate conditions, while expenses increased by 8%[151] - The group's liquidity coverage ratio stood at 145%, and the common equity tier 1 ratio was 14.1%, above the target range[151] - Net interest income increased by 20% (23% on a constant currency basis), with net interest margin rising by 26 basis points to 1.67%[153] - Credit impairment charges decreased by 37% to 528 million, with an annualized loan loss rate of 17 basis points[152] - The group recorded a net gain of 262 million from the sale of its aviation finance business[152] - Basic earnings per share increased by 32% to 128.9 cents, and the full-year dividend rose by 50% to 27 cents per share[152] - The group announced a new 1 billion share buyback program, following the completion of two previous buybacks totaling 2 billion[152] - The cost-to-income ratio improved by 2 percentage points to 63%, reflecting a positive income-to-cost growth differential of 4%[151] - The group reduced the book value of its investment in Bohai Bank by 850 million, reflecting updated valuation calculations[153] - Net interest income increased by 2% to HKD 7,769 million, with a 5% increase at constant exchange rates[154] - Non-net interest income rose by 17% to HKD 10,250 million, with a 20% increase at constant exchange rates[154] - Reported operating income grew by 10% to HKD 18,019 million, with a 13% increase at constant exchange rates[154] - Transaction banking services revenue surged by 54% at constant exchange rates, driven by strong pricing discipline and pass-through rates in a rising interest rate environment[155] - Cash management revenue increased by 83% at constant exchange rates, reflecting robust pricing strategies[155] - Financial markets revenue decreased by 2% at constant exchange rates, but increased by 3% excluding a one-time mark-to-market liability gain in 2022[155] - Wealth management revenue grew by 10% at constant exchange rates, with bank insurance revenue up by 17%[156] - Retail products revenue rose by 26% at constant exchange rates, with deposit income increasing by 74% due to active pass-through rate management[156] - Corporate, commercial & institutional banking profit increased by 42%, with revenue growth of 20% driven by cash management in a rising interest rate environment[158] - Personal, private & SME banking profit rose by 60%, with revenue up by 22% due to retail deposit income benefiting from higher interest rates[158] - Corporate, Commercial & Institutional Banking profit increased by 36% to 5,436 million HKD, driven by strong growth in cash management and retail deposits[159] - Personal, Private & SME Banking profit surged by 56% to 2,487 million HKD, reflecting robust growth in retail deposits and wealth management[159] - Asia region profit rose by 32% to 4,740 million HKD, supported by a 15% increase in income and a 146 million HKD reduction in credit impairments[159] - Africa & Middle East region profit jumped by 90% to 1,311 million HKD, with a 26% increase in income and a 210 million HKD reduction in credit impairments[159] - Adjusted net interest income grew by 20% to 9,547 million HKD, driven by a 26 basis points increase in net interest margin to 167 basis points[160] - Average interest-earning assets increased by 1% to 572,520 million HKD, with a total yield rising by 206 basis points[160] - Credit impairment charges decreased by 37% to 528 million HKD, with a loan loss rate of 17 basis points[162] - Customer loans and advances decreased by 8% to 292,145 million HKD, with a 5% reduction in expected credit loss provisions to 5,170 million HKD[164] - China commercial real estate-related impairment charges totaled 282 million HKD, with a cumulative provision of 1.2 billion HKD over the past three years[164] - Stage 3 coverage ratio (before/after collateral) increased to 60%/76%, up by 3 percentage points before collateral[165] - Credit Grade 12 balances increased by 37% to HKD 2.155 billion[165] - Early warning accounts increased by 11% to HKD 5.512 billion[165] - Investment-grade corporate risk exposure decreased by 3 percentage points to 73%[165] - Goodwill and other impairments related to the investment in Bohai Bank amounted to HKD 850 million[166] - Sale of global aviation finance business generated proceeds of HKD 3.6 billion, with a gain of HKD 309 million[166] - Restructuring loss was HKD 14 million, reflecting costs
渣打集团(02888) - 2023 - 年度财报