Financial Performance - The group achieved a return on tangible equity of 3.0%, which is an increase of 340 basis points compared to the previous benchmark [8]. - Operating income reached $14.76 billion, reflecting a 3% increase based on the basic benchmark [8]. - The common equity tier 1 capital ratio stood at 14.4%, exceeding the target range of 13-14% [8]. - The total shareholder return for 2020 was negative 34.6%, reflecting a decrease in profit forecasts and the cancellation of dividend payments due to regulatory requirements during the COVID-19 challenges [48]. - The company recorded quarterly revenue growth between 4% to 8% from the end of 2018 to mid-2020, despite the impact of COVID-19, with positive revenue and cost growth each quarter [53]. - The company reported a pre-tax profit of 18.41 billion, with a tangible equity return of 6.6% [103]. - Basic operating income decreased by 3% to 14,765 million in 2020 [150]. - Pre-tax profit decreased by 40% to 2,508 million, reflecting significant impacts from restructuring and goodwill impairment [149]. COVID-19 Response - The group provided $1 billion in financing at cost price to support businesses supplying anti-epidemic products and services during the COVID-19 pandemic [5]. - A global charity fund of $50 million was established to provide emergency support and long-term assistance to the most affected communities [5]. - The company provided $1 billion in credit support to customers for producing goods and services to combat the pandemic [188]. - The charity fund has provided support to communities in Malaysia, Zambia, and the UK during the pandemic [40]. - The company launched a $50 million global fund to assist individuals affected by the COVID-19 pandemic, with an immediate donation of $25 million [188]. - The company has implemented multiple comprehensive support plans for retail and corporate clients, including temporary loan repayment and interest waivers, to address the impacts of the COVID-19 pandemic [176]. Strategic Initiatives - The group is focused on sustainable finance and has set 11 sustainable development goals to align with the United Nations' objectives [7]. - The company plans to invest $1.6 billion in regulatory, strategic, network, and system enhancements in 2020, maintaining a focus on expanding its capabilities and influence [54]. - The company aims to gradually increase the annual dividend per share as it executes its strategy towards a 10% tangible equity return target [46]. - The company aims to achieve a 10% return on tangible equity, supported by its updated strategic focus [190]. - The company plans to focus on high-return and high-growth markets, aiming to lead in emerging market corporate banking [92]. Digital Transformation - The active usage rate of digital services among retail banking customers increased to 104% in 2020, up from 52% in 2019 and 2% in 2018 [54]. - The company launched its virtual bank Mox in Hong Kong and is preparing to introduce a "banking-as-a-service" model in Indonesia [57]. - Digital account opening rate rose to 80%, up from approximately 30% in 2019, while digital service usage increased to 70% from 25% [90]. - The company aims to achieve a 95% digital platform transition for customers by 2023 [90]. - The company launched a new virtual bank, Mox, which had 66,000 customers and recorded deposits of HKD 5.2 billion by the end of 2020 [90]. Market Presence - The group operates in 59 markets globally and provides services to clients in an additional 85 markets, being the only international bank with a presence in all ten ASEAN countries [26]. - The Greater China and North Asia region contributed 41% of the group's revenue in 2020, making it the largest market, serving clients in Hong Kong, mainland China, Japan, South Korea, Macau, and Taiwan [28]. - The company has been active in all ten ASEAN countries and has a strong presence in major South Asian markets, positioning itself as a preferred banking partner [26]. - The company has been operating in Africa and the Middle East for over 160 years, with a significant presence in 25 markets, including the UAE, Nigeria, and Kenya [15]. Governance and Compliance - The board welcomed new independent non-executive director Maria Ramos, enhancing its governance and expertise in the financial services sector [49]. - The company has improved its governance across various business areas, particularly in compliance with local regulatory requirements [169]. - The company has established measures to control operational risks, ensuring that operational losses do not significantly harm its business [175]. - The company has implemented enhanced third-party risk management measures following an internal review completed in Q4 2020 [177]. Sustainability and ESG - The company aims to achieve net-zero carbon emissions by 2050, integrating sustainable finance into its core value proposition [101]. - The company is committed to being a sustainable, innovative, and customer-centric bank while supporting clients in the transition to a low-carbon economy [168]. - The company has made significant contributions to local communities through its COVID-19 charity fund, raising millions from global colleagues [43]. - The company is focused on sustainable finance solutions and has integrated environmental, social, and governance risk management into its reputation risk framework [168]. Employee Engagement and Culture - The net promoter score for employees reached +17.5, an increase of 6 percentage points compared to +11.5 in 2019 [86]. - Employee engagement survey participation was 91% among 74,566 employees and 71% among 3,599 agency workers [200]. - The percentage of women in senior positions is currently 29.5%, with a mid-term target of 30% by December 2025 [196]. - The company aims to raise its "Cultural Inclusion" score to 84.5% by December 2024, with a current score of 84.5% [195].
渣打集团(02888) - 2020 - 年度财报