大新金融(00440) - 2024 - 中期财报

Financial Performance - Net interest income increased by 11.2% to HK$2,594,639, compared to HK$2,332,512 in 2023[6] - Net fee and commission income rose significantly by 61.2% to HK$594,753, up from HK$368,967 in the previous year[6] - Total operating income grew by 19.8% to HK$3,392,598, compared to HK$2,833,003 in 2023[6] - Operating profit before impairment losses increased by 40.8% to HK$1,769,951, up from HK$1,256,887 in 2023[6] - Profit for the period reached HK$1,470,192, representing a 21.8% increase from HK$1,206,845 in 2023[9] - Earnings per share increased, with basic earnings at HK$3.49 compared to HK$2.89 in 2023, and diluted earnings at HK$2.92 versus HK$2.74[6] - Total comprehensive income for the period, net of tax, was HK$2,092,884, up from HK$1,457,633 in 2023[9] - Other comprehensive income for the period, net of tax, amounted to HK$614,135, compared to HK$338,427 in the previous year[9] Asset and Liability Management - Total assets as of June 30, 2024, increased to HK$272,365,908, up from HK$269,788,561 as of December 31, 2023, representing a growth of approximately 0.6%[11] - Total liabilities increased to HK$229,967,035 from HK$228,789,977, marking a rise of about 0.5%[11] - Customer deposits rose to HK$207,664,546, compared to HK$206,535,360, reflecting an increase of approximately 0.5%[11] - Cash and balances with banks decreased to HK$13,403,439 from HK$16,925,694, a decline of about 20.8%[11] - The company’s financial assets at fair value through profit or loss totaled HK$1,460,615, compared to HK$1,680,710 in the previous period, indicating a decrease of approximately 13.1%[11] Credit and Impairment - Credit impairment losses surged by 243.4% to HK$543,863, compared to HK$158,386 in the previous year[6] - New credit impairment losses for the period were HK$582,258, significantly higher than HK$198,180 in 2023, reflecting a 194.5% increase[34] - Total impairment allowances increased to HK$1,180,190, up from HK$1,113,256, reflecting a rise of 6.0%[50] - Credit-impaired loans and advances as a percentage of total loans and advances to customers increased slightly to 1.96% from 1.94%[52] Cash Flow and Dividends - Cash flows from operating activities for the same period amounted to HK$2,919,591,000, compared to a net cash used of HK$1,622,156,000 in the previous year[17] - The company paid dividends of HK$522,681,000 on ordinary shares during the period, compared to HK$258,533,000 in the same period last year[17] - The company reported a net cash used in investing activities of HK$141,107,000, compared to HK$38,598,000 in the prior period[17] - The net cash used in financing activities was HK$2,865,323,000, significantly higher than HK$601,917,000 in the previous year[17] Risk Management - The Group focuses on managing various risks including credit risk, market risk, interest rate risk, liquidity risk, operational risk, reputation risk, and strategic risk[158] - The independent Group Risk function is responsible for establishing policies and monitoring the Group's risk positions, ensuring financial risks are considered in product planning and pricing[160] - The Group has established a Group Credit Committee responsible for approving major credit limits, with functional committees managing loan and treasury business risks[160] - The Group's risk management tools are continually improved to meet evolving business needs and regulatory requirements[160] Economic Outlook - Persistent high interest rates and geopolitical risks are expected to dampen borrowing and investment activities, leading to a slightly pessimistic overall outlook[165] - The credit quality management of the Group's portfolios remains challenged due to the credit deterioration of PRC property developers[165] - The Hong Kong GDP growth rate forecast for the base scenario as of June 30, 2024, is 2.4%, while the good scenario is 7.0%, and the bad scenario is -2.3%[169] Segment Performance - The Group's banking operations in Mainland China and Macau included personal and corporate banking services, reflecting a diversified revenue stream[119] - The insurance business segment generated significant revenue, contributing to the overall performance of the Group[119] - The Group's personal banking business includes services such as residential mortgage lending and credit card services, while corporate banking focuses on deposits and loans for commercial clients[116] Investment and Securities - The total value of trading securities and financial assets at fair value through profit or loss as of June 30, 2024, was HK$3,334,340,000, a decrease from HK$3,420,551,000 at the end of 2023[43] - The fair value of investment properties increased to HK$796,047,000 as of June 30, 2024, from HK$709,859,000 as of December 31, 2023, reflecting a revaluation process[72] - The total amount of gross loans and advances, net of impairment allowances, was HK$140,193,445, down from HK$141,936,220[51] Regulatory and Compliance - The Board of Directors has overall responsibility for risk management, including approving strategies and policies for managing credit and other risks[159] - The Group's internal auditors conduct regular reviews to ensure compliance with credit policies and regulatory guidelines[162] - The Group has implemented policies and processes for the approval and review of new products and activities, including details on loan grading and impairment policies[162]