中银香港(02388) - 2021 - 中期财报

Financial Performance - The net operating income before impairment provisions for the first half of 2021 was HKD 25,050 million, a decrease of 12.5% compared to HKD 28,743 million in the same period of 2020[5]. - The operating profit for the first half of 2021 was HKD 16,286 million, down 17.6% from HKD 19,788 million in the first half of 2020[5]. - The profit attributable to shareholders for the first half of 2021 was HKD 13,264 million, a decline of 16.5% from HKD 15,898 million in the same period of 2020[5]. - The basic earnings per share for the first half of 2021 was HKD 1.1895, compared to HKD 1.4385 in the first half of 2020, reflecting a decrease of 17.3%[5]. - The average return on equity for the first half of 2021 was 8.42%, down from 10.43% in the same period of 2020[5]. - The total pre-tax profit for the group was HKD 16.15 billion, down from HKD 19.22 billion in the previous year[42]. - The profit for the period was HKD 13,591 million, down from HKD 16,161 million, which is a decline of 15.9%[80]. - Total operating income for the first half of 2021 was HKD 35,020 million, down from HKD 37,554 million, representing a decrease of 6.8%[80]. Income and Expenses - The net interest margin for the first half of 2021 was 1.08%, with an adjusted net interest margin of 1.10%, down from 1.16% in the same period of 2020[8]. - Interest income for the first half of 2021 was HKD 19.848 billion, down from HKD 20.992 billion in the second half of 2020[15]. - Net interest income was HKD 15.942 billion, a slight decrease from HKD 16.102 billion in the previous half-year[15]. - Operating expenses for the first half of 2021 were HKD 7.582 billion, a decrease of HKD 0.07 billion or 0.1% year-on-year, with a cost-to-income ratio of 30.27%[24]. - The total insurance claims and benefits amounted to HKD 15,544 million, a decrease from HKD 16,723 million, indicating a reduction of 7.1%[80]. Asset and Liability Management - The liquidity coverage ratio averaged 134.09% in Q1 2021 and 134.20% in Q2 2021, indicating strong liquidity[10]. - The loan-to-deposit ratio at the end of the period was 65.05%, down from 68.59% at the end of 2020[5]. - The total capital ratio was 19.79% as of June 30, 2021, reflecting a temporary decline due to new share subscription activities[10]. - Total liabilities were HKD 3,584.639 billion, with an average interest rate of 0.22%[17]. - Total assets as of June 30, 2021, were HKD 3,834.870 billion, an increase from HKD 3,320.981 billion as of December 31, 2020[29]. Customer Loans and Deposits - Customer loans grew by HKD 247.09 billion or 16.5% to HKD 1,744.95 billion, with a 6.1% increase after adjusting for new share subscription financing[31]. - Customer deposits totaled HKD 2,682.44 billion, up HKD 498.73 billion or 22.8% from the end of the previous year, with a 5.2% increase after adjusting for new share subscription funds[36]. - The credit card write-off ratio was 1.58%, down 0.30 percentage points year-on-year[35]. - The loan quality ratio for specific classified or impaired loans was 0.29%, an increase of 0.02 percentage points from the end of the previous year[34]. Risk Management - The group has established a comprehensive risk management framework to effectively manage market risks and promote healthy business development[64]. - The group conducts scenario analysis and stress testing to assess potential interest rate risks under adverse market conditions[65]. - The company employs a prudent credit strategy to ensure the adequacy of impairment provisions, reflecting a cautious approach to credit risk management[63]. - The group aims to manage liquidity risk effectively, ensuring a stable and sufficient funding source primarily from customer deposits, supplemented by interbank borrowings and capital market issuances[67]. - The group has established liquidity risk indicators and limits, including liquidity coverage ratio and stable funding net ratio, to monitor and control liquidity risk on a daily basis[68]. Digital Transformation and Innovation - The company is focusing on digital transformation and expanding its presence in the Greater Bay Area and Southeast Asia[41]. - The launch of the "PlanAhead Smart Future" mobile banking service aims to enhance wealth planning for customers[45]. - The company is committed to digital transformation, enhancing mobile banking capabilities and introducing AI for real-time decision-making[56]. - The group actively promotes cross-border financial services to meet the needs of Hong Kong residents in the Greater Bay Area[47]. - The company launched a corporate public welfare program, donating HKD 1,000 for each successfully issued "Guarding the Future" life insurance policy[55]. Regulatory Compliance and Accounting Standards - The interim financial data is prepared in accordance with Hong Kong Accounting Standards (HKAS) No. 34, "Interim Financial Reporting"[86]. - The group adopted several revised accounting standards effective from January 1, 2021, including HKAS No. 39 and HKFRS No. 16, which address issues related to benchmark interest rate reforms and COVID-19 related rent concessions, respectively[86]. - The application of the revised standards did not have a significant impact on the group's financial statements[86]. - The revised HKAS No. 12 clarifies the scope of initial recognition exemptions for deferred tax assets and liabilities, which will also not significantly impact the group's financial statements[89]. Awards and Recognition - The group has been awarded "Best Local Cash Management Bank in Hong Kong" for eight consecutive years and "Best Local Trade Finance Bank in Hong Kong" for three consecutive years[50]. - The company received multiple awards, including the "Best MPF Plan Award" for its "My MPF Plan" in the 2021 Best Fund Awards (Hong Kong)[53]. - The group maintained the largest market share in Hong Kong's IPO underwriting services, both in terms of the number of projects and the amount of capital raised[48].