DAHSING BANKING(HK:02356)2021-09-16 09:11Financial Performance - For the six months ended June 30, 2021, net interest income increased by 5.8% to HK$1,963,383,000 compared to HK$1,856,596,000 in 2020[6]. - Fee and commission income rose by 10.9% to HK$641,514,000, up from HK$578,214,000 in the previous year[6]. - Operating profit before impairment losses was HK$1,269,832,000, reflecting a 3.6% increase from HK$1,226,167,000 in 2020[6]. - Profit for the period increased by 17.4% to HK$1,110,409,000, compared to HK$945,953,000 in 2020[6]. - Earnings per share rose to HK$0.79, up from HK$0.67 in the same period last year[6]. - The company reported a profit before taxation of HK$1,317,449,000, which is a 20.3% increase from HK$1,095,040,000 in the previous year[6]. - Total comprehensive income for the period, net of tax, was HK$1,049,321,000, compared to HK$364,064,000 in 2020[9]. - The share of results of an associate increased to HK$433,054,000 from HK$411,759,000 in the prior year[6]. - Basic earnings for the six months ended June 30, 2021, were HK$1,110,409,000, compared to HK$945,990,000 for the same period in 2020[74]. Asset and Liability Management - Total assets as of June 30, 2021, amounted to HKD 245,324,916 thousand, a decrease from HKD 247,306,223 thousand as of December 31, 2020, representing a decline of 0.8%[10]. - Total liabilities decreased to HKD 215,265,323 thousand from HKD 217,951,036 thousand, a reduction of 1.5%[10]. - Customer deposits increased slightly to HKD 190,443,108 thousand from HKD 190,339,807 thousand, reflecting a growth of 0.05%[10]. - Total equity attributable to the Company's shareholders rose to HKD 30,059,593 thousand from HKD 29,355,187 thousand, marking an increase of 2.4%[10]. - The total estimated realizable value of certain properties in Mainland China was HK$63,633,000 as of June 30, 2021, slightly up from HK$63,158,000 at the end of 2020[103]. Cash Flow and Investment Activities - Net cash from operating activities for 2021 was HK$29 million, a significant improvement from a net cash outflow of HK$1,530.86 million in 2020[18]. - Cash and cash equivalents at the end of the period decreased to HK$16,411.59 million from HK$25,555.74 million in 2020, representing a decline of 35.8%[18]. - Net cash used in investing activities was HK$182.62 million, compared to HK$49.44 million in 2020, indicating increased investment activity[18]. - Net cash used in financing activities decreased to HK$544.50 million from HK$2,494.13 million in 2020, reflecting a reduction in debt repayment obligations[18]. Credit Quality and Impairment - Credit impairment losses significantly decreased by 67.9% to HK$117,050,000 from HK$365,193,000 in the prior period[6]. - New credit impairment losses for the period were HKD 117,050 thousand, a significant decrease of 67.9% compared to HKD 365,193 thousand in 2020[52]. - The percentage of credit-impaired loans and advances as a percentage of total loans and advances to customers was 0.96%, down from 1.14%[90]. - Total impairment allowances for loans and advances were HKD 1,292,844, up from HKD 1,251,164[90]. Taxation - Current income tax for the six months ended June 30, 2021, was HK$144,702,000, an increase from HK$137,793,000 in 2020[72]. - The total taxation expense for the six months ended June 30, 2021, was HK$207,040,000, compared to HK$149,087,000 in 2020[72]. Segment Reporting - The Group's personal banking business includes services such as residential mortgage lending, personal loans, and credit card services, contributing to diversified revenue streams[175]. - Corporate banking business focuses on deposits and loans for commercial and institutional customers, enhancing the Group's market presence[175]. - The overseas banking segment includes operations in Macau and China, expanding the Group's geographical footprint[175]. - The Group's strategy includes segment reporting based on personal banking, corporate banking, treasury & global markets, and overseas banking, facilitating performance assessment and resource allocation[174]. Market and Economic Conditions - The impact of foreign exchange rate changes resulted in a decrease of HK$19.23 million in cash and cash equivalents, compared to a larger decrease of HK$143.49 million in 2020[18]. - The Group's net long/(short) position in foreign currencies as of June 30, 2021, was a short position of HK$838 million[189].