东亚银行(00023) - 2021 - 中期财报

Financial Performance - Operating profit before impairment losses for the half year ended 30 June 2021 was HK$3,768 million, a decrease of 8.6% from HK$4,124 million in the same period of 2020[4]. - Profit attributable to owners of the parent increased to HK$2,671 million for the half year ended 30 June 2021, compared to HK$1,532 million in the same period of 2020, representing a growth of 74.4%[4]. - Basic earnings per share rose to HK$0.78 for the half year ended 30 June 2021, up from HK$0.39 in the same period of 2020, marking a 100% increase[9]. - Net profit for the six months ended June 30, 2021, was HK$2,697 million, a 73% increase from HK$1,558 million in the same period of 2020[10]. - Total comprehensive income for the period was HK$2,446 million, compared to a loss of HK$1,321 million in the previous year[10]. Assets and Liabilities - Total assets increased to HK$900,509 million as of 30 June 2021, compared to HK$848,713 million at the same time last year, reflecting a growth of 6.1%[5]. - The total equity as of 30 June 2021 was HK$114,506 million, an increase from HK$106,998 million at the end of June 2020, reflecting a growth of 6.6%[5]. - The company reported a total equity attributable to owners of the parent of HK$100,251 million, up from HK$98,885 million at the end of 2020[11]. - The company’s total liabilities increased to HK$786,003 million from HK$770,624 million at the end of 2020[11]. - Total liabilities held for sale amounted to HK$28,281 million as of June 30, 2021, compared to HK$26,864 million at the end of 2020, showing an increase of approximately 5.3%[74]. Income and Expenses - Net interest income for the half year ended 30 June 2021 was HK$5,523 million, down from HK$6,114 million in the same period of 2020, a decline of 9.7%[8]. - Non-interest income increased to HK$2,892 million for the half year ended 30 June 2021, compared to HK$2,360 million in the same period of 2020, representing a growth of 22.5%[8]. - The cost-to-income ratio for the half year ended 30 June 2021 was 55.2%, up from 51.3% in the same period of 2020, indicating increased operating expenses relative to income[4]. - Total operating expenses for the six months ended 30th June 2021 were HK$4,647 million, an increase from HK$4,350 million in the previous year[39]. - Interest income for the six months ended June 30, 2021, was HK$8,887 million, down from HK$11,809 million in the same period of 2020, representing a decrease of approximately 25%[29]. Cash Flow and Dividends - The net cash outflow from operating activities for the six months ended June 30, 2021, was HK$14,015 million, compared to HK$2,962 million for the same period in 2020, indicating a significant increase in cash used[14]. - The interim dividend declared for the six months ended June 30, 2021, was HK$0.35 per share, totaling HK$1,022 million, compared to HK$0.16 per share totaling HK$466 million for the same period in 2020[19]. - The net cash used in investing activities for the six months ended June 30, 2021, was HK$162 million, a significant decrease from the net cash generated of HK$744 million in the same period of 2020[14]. - The net cash used in financing activities for the six months ended June 30, 2021, was HK$1,357 million, compared to net cash generated of HK$3,940 million in the same period of 2020, indicating a shift in financing strategy[14]. Loans and Advances - Total loans and advances to customers and trade bills reached HK$546,577 million as of 30 June 2021, an increase of 6.7% from HK$512,308 million at the end of June 2020[5]. - Loans and advances to customers at amortised cost rose to HK$535,112 million as of June 30, 2021, compared to HK$513,929 million as of December 31, 2020, indicating an increase of about 4.1%[51]. - The total gross carrying amount of loans and advances to customers at amortised cost is HK$535,112 million, with an impairment allowance of HK$ (4,279) million[130]. - The total advances overdue for over three months decreased from HK$2,813 million at 31st December 2020 to HK$2,526 million at 30th June 2021[62]. - Individually impaired loans in property development decreased to HK$397 million as of June 30, 2021, from HK$642 million as of December 31, 2020[56]. Impairment and Provisions - Impairment losses on financial instruments decreased significantly to HK$581 million for the six months ended 30th June 2021, compared to HK$2,675 million in the same period of 2020[41]. - The total impairment allowances for loans and advances to customers decreased to HK$4,279 million as of June 30, 2021, from HK$4,859 million as of December 31, 2020[51]. - The balance of impairment allowances for loans and advances to customers is HK$4,350 million as of June 30, 2021, with HK$2,875 million classified as lifetime ECL credit-impaired[163]. - The impairment allowance for Grade 18 (Substandard) is HK$ (2,809) million, with a credit-impaired ECL of HK$ (66) million[130]. - The total gross carrying amount for trade bills at amortised cost is HK$758 million, with an impairment allowance of HK$ (1) million[134]. Strategic Initiatives - The Group completed a strategic review and initiated the sale process for its subsidiary, BEA Life Limited, on 23rd September 2020[198]. - The sale of BEA Life to AIA was agreed upon for a consideration of HK$5,070 million in cash, plus notional interest from 30th September 2020 until completion[198]. - The completion of the sale of BEA Life is expected to occur shortly following approval from the Insurance Authority of Hong Kong[198]. - The financial statements reflect a significant restructuring as the Bank divests from its life insurance operations, aiming to streamline its focus on core banking activities[199]. - The assets and liabilities of BEA Life and the related portfolio are classified as held for sale in the consolidated financial statements as of 30th June 2021[199].