DAH SING(HK:00440)2025-04-28 09:28Financial Performance - Profit attributable to shareholders reached HK$1,673 million in 2024, a rise of 5.1% compared to HK$1,592 million in 2023[7]. - Basic earnings per share increased to HK$5.25 in 2024, up from HK$4.99 in 2023, reflecting a growth of 5.2%[7]. - Total dividend distribution for 2024 was HK$669 million, compared to HK$637 million in 2023, marking a 5.0% increase[7]. - The Group's profit attributable to shareholders increased by 5% to HK$1,673 million, driven by higher net interest and non-interest income[60]. - Profit attributable to shareholders rose by 5.1% to HK$1,673.1 million in 2024, up from HK$1,592.1 million in 2023[74]. - Operating income rose by 17.2% to HK$6,934.9 million, driven by higher net interest income and improved asset yields[87]. - The Group's operating profit before credit impairment losses increased by 25.9% to HK$3,767.8 million in 2024, compared to HK$2,993.4 million in 2023[74]. Assets and Liabilities - Total assets decreased to HK$266,523 million in 2024 from HK$269,789 million in 2023, a decline of 1.0%[7]. - The total liabilities, including subordinated notes, were HK$223,325 million in 2024, down from HK$228,790 million in 2023, a decrease of 2.4%[7]. - The consolidated Common Equity Tier 1 ratio increased to 16.9% as of December 31, 2024, up from 16.2% at the end of 2023[96]. Deposits and Loans - Total deposits decreased to HK$204,894 million in 2024 from HK$208,963 million in 2023, a decline of 2.6%[7]. - Advances to customers (excluding trade bills) were HK$138,374 million in 2024, down from HK$143,049 million in 2023, a decrease of 3.7%[7]. - Customer deposits rose from HK$206,535 million in 2023 to HK$200,599 million in 2024, indicating a slight decrease of 2.0%[7]. - Loan growth was weak, with overall loan balances declining by 3% due to subdued demand in core markets[61]. - The total loan volume in Hong Kong dropped by approximately 3% year-on-year, with refinancing being the primary driver of loan demand[120]. Economic Environment - The economic growth in Hong Kong for 2024 is expected to be moderate, influenced by high interest rates affecting loan demand and consumer confidence[65]. - Hong Kong's economic growth slowed to 2.5% in 2024 from 3.2% in 2023, impacted by weak domestic demand[78]. - Geopolitical risks, including the Russia-Ukraine war and US-China trade conflicts, have dampened economic growth and reduced international trade activities[196]. Governance and Leadership - The company has a strong board with members holding significant experience in finance, banking, and regulatory affairs[27][28][29][31][32][33]. - The company is focused on maintaining high standards of governance and compliance through its independent directors[28][32]. - The leadership team is well-positioned to navigate market challenges and pursue growth opportunities in the banking industry[41]. - The company continues to strengthen its board with experienced professionals from diverse banking backgrounds, enhancing strategic decision-making capabilities[39][41]. Risk Management - The Group maintained a prudent approach to expense control and risk management amidst a high interest rate environment[54]. - Credit impairment charges surged by 145.0% year-on-year, primarily due to increased provisions for credit losses in the Mainland China property sector and Hong Kong commercial real estate[89]. - The Group employs Expected Credit Loss (ECL) models to assess impairment provisions, considering macroeconomic factors and risk characteristics[197]. - The Group's fraud risk management framework includes a dedicated team to improve fraud awareness and prevention in a rapidly changing market[200]. Insurance and Investment Operations - Insurance revenue increased by 19.3% to HK$1,154 million in 2024, up from HK$967 million in 2023[166]. - The Group's insurance operations faced risks from natural disasters, but the impact on financial position was immaterial due to prudent underwriting and reinsurance arrangements[199]. - The solvency ratio of Macau Insurance Company (MIC) was 919% in 2024, down from 1,288% in 2023[175]. - DSI achieved gross premium written (GPW) of HK$916 million, with a compound annual growth rate of over 10% from 2019 to 2024 and a year-on-year growth of 9%[186]. Digital Transformation and Customer Experience - Digital transactions surged by 42% year-on-year in 2024 due to enhancements in the "Next Best Action" AI solution and the launch of a streamlined identity verification service for SMEs[112]. - The bank continues to focus on enhancing digital solutions and improving customer experience through system upgrades and process changes[131][138]. - The bank's strategy includes gradually renovating and relocating branches to enhance customer service and digital experience, while transitioning to paperless operations[113].