大新银行集团(02356) - 2024 - 中期财报

Financial Performance - Interest income for the six months ended June 30, 2024, was HK$6,205,704, an increase from HK$5,287,210 in 2023, reflecting a growth of 17.3%[6] - Net interest income rose to HK$2,538,695, up 11.9% from HK$2,269,045 in the previous year[6] - Operating income increased by 22.1% to HK$3,286,757 compared to HK$2,691,406 in 2023[6] - Profit for the period attributable to shareholders was HK$1,396,074, representing a 25.6% increase from HK$1,111,923 in 2023[9] - Basic earnings per share improved to HK$0.99, up from HK$0.79, marking a growth of 25.3%[6] - Total comprehensive income for the period, net of tax, was HK$1,450,192, compared to HK$1,076,603 in 2023, indicating a growth of 34.7%[9] - The net fee and commission income increased significantly by 59.8% to HK$603,386, compared to the previous year[6] - Operating profit before impairment losses rose by 46.1% to HK$1,691,892 from HK$1,158,085 in 2023[6] - The total operating income was HK$3,286,757,000, with operating expenses of HK$1,594,865,000, resulting in an operating profit of HK$1,691,892,000[121] - Profit before taxation for the six months ended June 30, 2024, reached HK$1,579,921, up from HK$1,211,901 in 2023, indicating an increase of about 30%[126] Asset and Liability Management - Total assets as of June 30, 2024, increased to HK$262,372,675, up from HK$260,744,094 as of December 31, 2023, representing a growth of approximately 0.63%[11] - Total liabilities increased slightly to HK$228,739,842 from HK$227,854,651, reflecting a growth of approximately 0.39%[11] - Customer deposits rose to HK$208,143,537, an increase from HK$207,233,698, reflecting a growth of about 0.44%[11] - The balance of cash and balances with banks decreased to HK$13,054,178 from HK$16,395,770, a decline of about 20.5%[11] - Total equity as of June 30, 2024, reached HK$33,632,833, up from HK$32,889,443, marking an increase of approximately 2.25%[11] - The total amount of subordinated notes as of June 30, 2024, was HK$4,109,232, down from HK$5,916,645 as of December 31, 2023, indicating a decrease of 30.5%[83] - The total liabilities stood at HK$228,739,842, with customer deposits being the largest component[104] Credit and Impairment - Credit impairment losses surged by 246.7% to HK$544,007 from HK$156,893 in the previous year[6] - New credit impairment losses for the six months ended June 30, 2024, were HK$544,007, compared to HK$156,893 in 2023, indicating a significant rise in provisions[34] - The total impairment allowances for loans and advances amounted to HK$1,180,190 as of June 30, 2024, compared to HK$1,113,256 as of December 31, 2023, indicating an increase of about 6%[56] - The total expected credit loss (ECL) allowance is HK$1,243,475,000, an increase from HK$1,181,574,000 as of December 31, 2023[69] - The ECL allowance for Stage 1 is HK$404,463,000, for Stage 2 is HK$307,994,000, and for Stage 3 is HK$531,018,000 as of June 30, 2024[69] Cash Flow and Investments - Net cash used in operating activities was HK$ (1,958,962) thousand, compared to HK$ 965,062 thousand in the previous year, indicating a significant decrease[19] - Net cash used in investing activities was HK$ (140,599) thousand, up from HK$ (40,075) thousand in the previous year, reflecting increased investment outflows[19] - Net cash used in financing activities rose sharply to HK$ (2,758,979) thousand from HK$ (645,339) thousand, primarily due to repayment of subordinated notes[19] - Cash and cash equivalents at the end of the period decreased to HK$ 14,017,431 thousand from HK$ 19,425,731 thousand, showing a decline of approximately 28%[19] Segment Performance - Net interest income for the Personal Banking segment was HK$1,094,468, while non-interest income was HK$531,816, contributing to a total operating income of HK$1,626,284,000[121] - The Corporate Banking segment reported net interest income of HK$582,205,000 and non-interest income of HK$103,928,000, leading to total operating income of HK$686,133,000[121] - The Treasury and Global Markets segment achieved net interest income of HK$650,687,000 and non-interest income of HK$21,032,000, totaling HK$671,719,000 in operating income[121] - The Mainland China and Macau Banking segment generated net interest income of HK$230,318,000 and non-interest income of HK$83,682,000, resulting in total operating income of HK$314,000,000[121] Risk Management - The Group's liquidity risk management ensures the ability to meet financial obligations without incurring unacceptable losses[155] - The Group's operational risk is associated with inadequate internal processes and external events, which could lead to direct or indirect losses[155] - The Group's risk management expertise has improved the overall quality of its lending portfolios, enabling it to meet changing regulatory requirements confidently[157] - The Group's expected credit loss (ECL) measurement methodology remains consistent with the audited financial statements for the year ended December 31, 2023, focusing on either a 12-month or lifetime basis depending on credit risk increases[161] - The Group continues to monitor high-risk loan accounts and has updated forward-looking assumptions to reflect market conditions as of June 30, 2024, with scenario weights of 70%, 11%, and 19% for "baseline," "good," and "bad" scenarios respectively[165] Market Conditions and Economic Outlook - The Hong Kong GDP growth rate forecast for the base scenario is 2.4% for 2024, with a good scenario at 7.0% and a bad scenario at -2.3%[173] - The Hong Kong unemployment rate forecast for the base scenario is 2.8% for 2024, with a good scenario at 2.3% and a bad scenario at 4.7%[173] - A 1% increase in unemployment rates would result in an ECL impact of HK$17,194,000 for retail and HK$27,832,000 for corporate as of June 30, 2024[181] - A 0.5% decrease in GDP growth rates would lead to an ECL impact of HK$3,453,000 for retail and HK$5,207,000 for corporate as of June 30, 2024[181]