DAHSING BANKING(HK:02356)2025-04-28 09:47Financial Performance - Shareholders' funds increased from HK$ 32,578 million in 2023 to HK$ 33,512 million in 2024, representing a growth of 2.86%[7] - Profit attributable to shareholders rose from HK$ 1,860 million in 2023 to HK$ 2,060 million in 2024, marking an increase of 10.75%[7] - Basic earnings per share improved from HK$ 1.32 in 2023 to HK$ 1.47 in 2024, reflecting a growth of 11.36%[7] - Total dividend distribution increased from HK$ 843 million in 2023 to HK$ 928 million in 2024, an increase of 10.06%[7] - The group's profit attributable to shareholders in 2024 increased by 11% to HK$2,060 million, driven by higher net interest and non-interest income[72] - Profit for the year increased by 10.8% to HK$2,060.3 million in 2024, up from HK$1,860.3 million in 2023[89] Asset and Liability Management - Total deposits decreased from HK$ 209,662 million in 2023 to HK$ 205,863 million in 2024, a decline of 1.43%[7] - Total assets decreased from HK$ 260,744 million in 2023 to HK$ 256,339 million in 2024, a decline of 1.54%[7] - The total liabilities, including subordinated notes, decreased from HK$ 227,855 million in 2023 to HK$ 222,516 million in 2024, a decline of 2.00%[7] - The loan to deposit ratio for 2024 is 67.2%, slightly down from 68.2% in 2023[7][8] - Advances to customers (excluding trade bills) decreased from HK$ 143,049 million in 2023 to HK$ 138,374 million in 2024, a decrease of 3.68%[7] Income and Revenue Growth - Operating income rose by 17.2% to HK$6,934.9 million in 2024, compared to HK$5,916.1 million in 2023[89] - Operating profit before credit impairment losses grew by 30.9% to HK$3,594.9 million in 2024[89] - Net interest income rose by 10%, reflecting the impact of elevated interest rates and effective funding cost management[73] - The net interest margin increased to 2.17% in 2024 from 2.01% in 2023[85] - The bancassurance business achieved robust growth, with fee and net commission income increasing by 53%[74] Credit and Impairment Management - Credit impairment provisions were increased against Mainland China property developers and the Hong Kong Commercial Real Estate sector[70] - Credit impairment charges surged by 145.0% year-on-year, attributed to higher provisions for credit losses related to exposures in the Mainland China property developer sector and Hong Kong commercial real estate sector[99] - The share of net profit from the Bank of Chongqing was HK$677 million for 2024, with an impairment loss of HK$16 million, a decrease of 97% from 2023[75] Governance and Leadership - The company has a strong board with members having extensive experience in banking, finance, and corporate governance[26][27][28][30] - The leadership team has a diverse background, contributing to the company's adaptability in the financial sector[30] - The company is committed to leveraging its board's expertise to navigate market challenges and opportunities[30] - The company continues to strengthen its governance with the appointment of experienced independent directors[39] 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[122] - The bank's Private Banking business recorded strong year-on-year growth through improved personalized service models and cross-selling initiatives[121] - The bank's strategy includes gradually renovating and relocating branches to enhance customer service and digital experience, while transitioning to paperless operations[123] Market and Economic Conditions - Domestic consumption expenditure fell by 0.6% in 2024 despite a 30% rise in inbound visitors[91] - The total export of goods increased by 8.7% in 2024, recovering from a 7.8% drop in 2023[90] - The Corporate Banking business reported negative loan growth in 2024, primarily due to a decline in trade finance[133] Employee Development and Corporate Culture - The average training hours per employee increased in 2024 compared to 2023, reflecting the Group's commitment to employee development[193] - Four themed weeks focusing on staff wellness, Culture and Values, Employee Value Proposition (EVP), and customer experience were organized to enhance staff awareness[194] - The Group's employee turnover rate improved significantly in 2024 compared to 2023, indicating effective talent management strategies[197] Capital Adequacy and Liquidity - The consolidated Common Equity Tier 1 ratio of Dah Sing Bank increased to 16.9% as of December 31, 2024, up from 16.2% at the end of 2023[106] - The liquidity maintenance ratio averaged 64.2% for the year 2024, showing a marginal increase from 64.0% in 2023[186] - Stress testing on capital and liquidity positions is regularly conducted, with results reviewed periodically by management and reported to the Board-level Risk Management and Compliance Committee[189]