恒生银行(00011) - 2020 - 中期财报

Financial Performance - Profit attributable to shareholders fell by 33% to HKD 9,143 million, with earnings per share decreasing by 34% to HKD 4.64[6]. - The average return on ordinary shareholders' equity was 10.7%, down from 17.0% in 2019[6]. - Operating profit fell by 28% to HKD 11,134 million, with a 20% decline before expected credit loss adjustments[11]. - Total operating income for the first half of 2020 was HKD 27,259 million, a decrease of 19% compared to HKD 33,800 million in the same period of 2019[16]. - The company reported a net loss of HKD 4.28 billion from property revaluation, compared to a net gain of HKD 1.87 billion in the same period last year[27]. - The total comprehensive income for the first half of 2020 was HKD 7,203 million, a decrease of 54.0% from HKD 15,655 million in the same period of 2019[121]. Income and Revenue - Net interest income decreased by 7% to HKD 14.792 billion, down HKD 1.061 billion from HKD 15.853 billion in the same period last year[11]. - Non-interest income dropped by 33% to HKD 4.395 billion[11]. - Wealth management business revenue decreased by 38% due to weak customer trading activity[17]. - The net service fee income decreased by HKD 310 million, or 9%, to HKD 3,175 million, with credit card service fee income down 26%[20]. - The company’s cost-to-income ratio was 32.8%, lower than the local industry average[12]. Credit Loss Provisions - Expected credit loss provisions increased to HKD 1.76 billion from HKD 510 million in the same period last year[12]. - The total impaired loans increased by HKD 958 million, or 46%, to HKD 3,031 million, with an impaired loan ratio of 0.32% as of June 30, 2020[25]. - The expected credit loss provision for the year was recorded as a total of 1,780 million, reflecting a net change in expected credit losses[77]. - The expected credit loss provisions increased significantly to 1,760 million for the six months ended June 30, 2020, compared to 510 million in the same period of 2019, indicating a rise of 245.1%[143]. Assets and Liabilities - Total assets increased to HKD 1,732,021 million from HKD 1,676,991 million, reflecting a growth of 3.3%[5]. - Total liabilities as of June 30, 2020, were HKD 1,555,906 million, compared to HKD 1,498,074 million at the end of 2019, marking an increase of around 3.8%[122]. - Customer loans (net of expected credit loss provisions) rose by HKD 11 billion, or 1%, to HKD 953 billion[36]. - Financial investments increased by HKD 56 billion, or 12%, to HKD 518 billion, reflecting a reallocation of surplus funds[36]. Dividends and Shareholder Returns - The bank declared an interim dividend of HKD 1.90 per share, down from HKD 2.80 in the previous year[6]. - The total dividend for the first half of 2020 was HKD 1.90 per share, down from HKD 2.80 per share in the first half of 2019, which is a decrease of about 32.1%[147]. - The company aims to maintain a stable dividend policy, considering profitability, regulatory requirements, and business opportunities[116]. Economic Outlook and Market Conditions - Economic outlook predicts a contraction of 4% to 7% for Hong Kong's economy in 2020 due to the pandemic[7]. - The COVID-19 pandemic has led to a deterioration in local GDP, with increased expected credit losses particularly affecting sectors such as oil and gas, transportation, retail, and dining[42]. - The expected global GDP contraction for 2020 is projected at -3.9%, followed by a strong recovery of 4.8% in 2021[60]. Risk Management - The bank's risk management strategy remains consistent, focusing on credit risk, liquidity risk, and market risk[38]. - The company continues to monitor market conditions closely and regularly reviews its credit portfolio to identify and mitigate potential risks[25]. - The company has implemented business continuity plans and maintained service level agreements despite increased remote work arrangements[43]. Digital Innovation and Customer Engagement - The company launched approximately 210 new digital innovation services and enhancements in the first half of the year, exceeding the 150 launched in the entire previous year[10]. - The number of registered personal online banking users and active users of the personal mobile finance app increased by one-third compared to the same period last year[10]. - Active users of the personal mobile banking app increased by 47% year-on-year, reflecting strong digital service adoption during the COVID-19 pandemic[32]. Regulatory and Compliance - The company is closely monitoring regulatory changes and assessing their impact on capital requirements, particularly concerning Basel III reforms[110]. - The auditor issued an unqualified opinion on the statutory financial statements as of December 31, 2019, without any matters to draw attention to[196]. - The financial statements include a consolidated balance sheet and income statement for the six months ended June 30, 2020, in compliance with Hong Kong Accounting Standards[196].