东亚银行(00023) - 2024 - 中期财报

Financial Performance - For the half year ended 30 June 2024, the profit attributable to owners of the parent was HK$2,111 million, a decrease of 20% from HK$2,636 million for the same period in 2023[5]. - The operating profit before impairment losses for the same period was HK$5,671 million, slightly down from HK$5,688 million in 2023[5]. - Basic earnings per share decreased to HK$0.69 from HK$0.87 in the previous year, reflecting a decline of approximately 20.7%[10]. - Net profit for the first half of 2024 was HK$2,121 million, a decrease of 19.6% compared to HK$2,638 million in the same period of 2023[11]. - Total comprehensive income for the first half of 2024 was HK$1,969 million, slightly up from HK$1,901 million in the first half of 2023[11]. Income and Expenses - The net interest income for the six months ended 30 June 2024 was HK$8,228 million, compared to HK$8,045 million in the same period last year, indicating a growth of 2.3%[9]. - The cost-to-income ratio increased to 45.9% from 44.7% in the previous year, suggesting a rise in operating expenses relative to income[5]. - Operating expenses totaled HK$4,813 million, an increase from HK$4,588 million in the previous year, representing a rise of 4.9%[37]. - Interest income for the six months ended June 30, 2024, was HK$20,379 million, up from HK$18,856 million in the same period of 2023, reflecting a growth of 8.0%[29]. - Interest expense for the six months ended June 30, 2024, was HK$12,151 million, compared to HK$10,811 million in the same period of 2023, an increase of 12.4%[32]. Assets and Liabilities - Total assets as of 30 June 2024 were HK$875,217 million, an increase from HK$872,069 million at the end of June 2023[6]. - Total liabilities as of June 30, 2024, were HK$752,035 million, reflecting a slight increase from previous periods[91]. - Total loans and advances to customers and trade bills increased to HK$536,979 million, up from HK$533,077 million in 2023[6]. - Total cash and cash equivalents at June 30, 2024, were HK$83,764 million, a decrease from HK$98,866 million at the end of June 2023, reflecting a decline of 15.3%[16]. - The bank's cash and balances with banks decreased to HK$39,988 million as of June 30, 2024, down from HK$45,903 million at the end of 2023[39]. Loans and Advances - The impaired loan ratio was 2.62%, slightly up from 2.56% in the previous year, indicating a slight deterioration in asset quality[6]. - Loans and advances to customers reached HK$535,310 million, with impairment allowances of HK$4,917 million, compared to HK$532,111 million and HK$5,127 million respectively at the end of 2023[45]. - The total impaired advances to customers were HK$14,016 million, with specific provisions of HK$3,791 million as of June 30, 2024[59]. - The total gross carrying amount of loans and advances to customers is HK$532,111 million, with impairment allowances of HK$5,127 million[130]. - The credit quality analysis shows that HK$9,796 million is classified as Special Mention, indicating potential credit risk[130]. Dividends and Shareholder Returns - The interim dividend declared was HK$0.31 per share, down from HK$0.36 per share in the previous year, reflecting a decrease of 13.9%[5]. - Proposed dividends increased to HK$817 million from HK$477 million, reflecting a positive outlook for shareholder returns[95]. Capital and Liquidity - Common Equity Tier 1 capital increased to HK$84,351 million as of June 30, 2024, from HK$83,590 million at the end of 2023, reflecting a growth of 0.9%[194]. - Total capital rose to HK$112,224 million as of June 30, 2024, compared to HK$106,362 million at the end of 2023, marking an increase of 5.2%[194]. - The liquidity coverage ratio for the second quarter of 2024 improved to 271.0%, up from 208.9% in the second quarter of 2023[199]. - The leverage ratio remained stable at 10.3% for both June 30, 2024, and December 31, 2023[198]. - The total capital ratio improved to 22.8% as of June 30, 2024, compared to 22.0% at the end of 2023[194]. Impairment and Provisions - Impairment losses on financial instruments increased to HK$2,881 million, compared to HK$2,492 million in the prior year, indicating a rise of 15.6%[37]. - The impairment allowance for loans and advances to customers at June 30, 2024, totaled HK$5,172 million, compared to HK$6,756 million at January 1, 2024[159]. - The total impairment allowances for loans and advances amount to HK$5,127 million, indicating a significant credit risk exposure[133]. - The total impairment allowances for loan commitments were HK$108 million, with HK$93 million for 12-month ECL and HK$15 million for lifetime ECL not credit-impaired[144]. Market and Investment - Investment securities increased to HK$182,899 million, compared to HK$167,270 million, marking a growth of 9.4%[12]. - The fair value reserve for debt instruments showed a net change in fair value of HK$915 million, compared to HK$765 million in the previous year[11]. - The fair value of the Group's investment in AFFIN Bank Berhad was HK$3,287 million, exceeding the carrying value of HK$2,969 million, resulting in no impairment charge[66]. - The total gross carrying amount of debt investment securities measured at amortised cost was HK$22,381 million, with impairment allowances of HK$14 million[147]. Risk Management - The bank's credit risk management includes monitoring significant increases in credit risk based on internal and external ratings[135]. - The 12-month expected credit loss (ECL) for loans and advances is HK$24,047 million, while the lifetime ECL not credit-impaired is HK$14,334 million[133]. - The market value of collateral held against impaired loans and advances to customers was HK$6,259 million as of June 30, 2024[127]. - The total amount of other liabilities, including accrued interest payable, was HK$49,010 million as of June 30, 2024, compared to HK$47,312 million at December 31, 2023[78].