大新银行集团(02356) - 2025 - 中期业绩

Company Information and Performance Summary Company Profile Dah Sing Banking Group Limited and its subsidiaries primarily provide banking, financial, and other related services, with its holding company being Dah Sing Financial Group Limited, a Hong Kong-listed company - Dah Sing Banking Group Limited is a bank holding company, and its principal subsidiary, Dah Sing Bank, Limited, is a licensed bank in Hong Kong[8] - The Company's immediate and ultimate holding company is Dah Sing Financial Group Limited, a Hong Kong-listed company[9] 2025 Interim Performance Overview For the six months ended June 30, 2025, Dah Sing Banking Group recorded unaudited profit attributable to shareholders of HK$1,578.9 million 2025 Interim Profit Attributable to Shareholders | Metric | Amount (HKD) | | :--- | :--- | | Profit Attributable to Shareholders | 1,578,900,000 | Condensed Consolidated Income Statement For the six months ended June 30, 2025, the Group's operating income increased by 15.5% year-on-year to HK$3.796 billion, with net interest income up 9.4% and net fee and commission income up 20.4%; however, credit impairment losses significantly increased by 33.8% year-on-year Key Data from Condensed Consolidated Income Statement (For the six months ended June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | 2,776,458 | 2,538,695 | 9.4 | | Net Fee and Commission Income | 726,763 | 603,386 | 20.4 | | Operating Income | 3,795,596 | 3,286,757 | 15.5 | | Operating Expenses | (1,707,075) | (1,594,865) | 7.0 | | Operating Profit Before Impairment Losses | 2,088,521 | 1,691,892 | 23.4 | | Credit Impairment Losses | (728,082) | (544,007) | 33.8 | | Profit Before Tax | 1,819,057 | 1,579,921 | 15.1 | | Profit Attributable to Shareholders of the Company | 1,578,850 | 1,396,074 | 13.1 | | Basic Earnings Per Share | HK$1.12 | HK$0.99 | - | Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive income for the period after tax was HK$1.883 billion, a significant year-on-year increase of 29.87%, primarily influenced by exchange differences on translating financial statements of overseas operations and net fair value changes in investment securities Key Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | | Profit for the Period | 1,578,850 | 1,396,074 | | Other Comprehensive Income for the Period, After Tax | 304,501 | 54,118 | | Total Comprehensive Income for the Period, After Tax | 1,883,351 | 1,450,192 | - Exchange differences on translating financial statements of overseas operations turned from a loss of HK$212 million in 2024 to a gain of HK$281 million in 2025[6] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets reached HK$260.684 billion, a 1.7% increase from the end of 2024, with customer deposits maintaining steady growth and shareholders' funds also increasing Key Data from Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | | Total Assets | 260,683,805 | 256,339,081 | | Total Liabilities | 225,543,222 | 222,515,709 | | Customer Deposits | 203,954,890 | 201,568,051 | | Shareholders' Funds | 34,829,167 | 33,511,956 | - Customer deposits increased from HK$201.568 billion at the end of 2024 to HK$203.955 billion as of June 30, 2025[7] - Shareholders' funds increased from HK$33.512 billion at the end of 2024 to HK$34.829 billion as of June 30, 2025[7] Notes to the Financial Statements General Information and Accounting Policies This section outlines the Group's background, the basis of preparation for interim financial statements, and adopted accounting policies, including the assessment of new and unadopted accounting standard amendments - The accounting policies adopted for the 2025 interim condensed consolidated financial statements are consistent with those in the 2024 audited annual consolidated financial statements, with amendments to HKAS 21 adopted, but no significant impact is expected[11] - The Group is assessing the specific impact of HKFRS 18 'Presentation and Disclosure in Financial Statements' on the consolidated financial statements, which will be effective for annual periods beginning on or after January 1, 2027[13][14] Revenue and Expense Analysis This section details the Group's income and expense components, including net interest income, net fee and commission income, net trading income, other operating income, operating expenses, credit impairment losses, share of results of associates, taxation, and earnings per share Net Interest Income Components (For the six months ended June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Interest Income | 5,318,854 | 6,205,704 | | Interest Expense | (2,542,396) | (3,667,009) | | Net Interest Income | 2,776,458 | 2,538,695 | Net Fee and Commission Income Components (For the six months ended June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Fee and Commission Income | 829,048 | 712,467 | | Retail Investment and Wealth Management Services Income | 124,822 | 66,704 | | Net Fee and Commission Income | 726,763 | 603,386 | Net Trading Income (For the six months ended June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Net Gains from Foreign Exchange | 242,992 | 89,746 | | Net Trading Income | 271,533 | 119,447 | Credit Impairment Losses (For the six months ended June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | New provisions (net of reversals) | 779,270 | 582,402 | | Total Credit Impairment Losses | 728,082 | 544,007 | | - Loans and advances to customers | 706,412 | 550,546 | - Share of results of associates (Chongqing Bank) was HK$443 million, an increase from HK$430 million in the prior period, with no impairment losses on investments in associates for the current period[23][24] Earnings Per Share (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic Earnings Per Share | HK$1.12 | HK$0.99 | | Diluted Earnings Per Share | HK$1.05 | HK$0.93 | Balance Sheet Items Analysis This section provides a detailed analysis of key balance sheet items, including various financial assets, loans and advances, derivative instruments, other liabilities, and the composition and changes in shareholders' funds Securities Held for Trading and Financial Assets at FVTPL (As of June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Securities held for trading | 3,332,932 | 2,006,353 | | Financial assets at fair value through profit or loss | 4,507 | 4,272 | | Total | 3,337,439 | 2,010,625 | Fair Value of Derivative Financial Instruments (As of June 30) | Metric | 2025 Assets (HKD Thousand) | 2025 Liabilities (HKD Thousand) | 2024 Assets (HKD Thousand) | 2024 Liabilities (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Derivatives held for trading | 1,662,107 | (1,819,065) | 1,800,047 | (1,690,736) | | Derivatives held for hedging | 1,564,112 | (152,770) | 2,283,684 | (149,179) | | Total | 3,226,219 | (1,971,835) | 4,083,731 | (1,839,915) | Loans and Other Accounts (As of June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Gross loans and advances to customers | 139,489,360 | 138,374,285 | | Total impairment allowances | (1,917,097) | (1,532,345) | | Net loans and other accounts | 143,600,870 | 143,048,675 | - The percentage of credit-impaired loans and advances to gross loans and advances to customers slightly improved from 3.21% at the end of 2024 to 3.12% as of June 30, 2025[33] Gross Overdue Loans and Advances (As of June 30) | Overdue Period | 2025 Gross Overdue Loans and Advances (HKD Thousand) | 2024 Gross Overdue Loans and Advances (HKD Thousand) | | :--- | :--- | :--- | | Over 3 months to 6 months | 502,932 | 2,104,322 | | Over 6 months to 1 year | 2,317,097 | 778,884 | | Over 1 year | 1,268,501 | 926,024 | | Total | 4,088,530 | 3,809,230 | Composition of Shareholders' Funds (As of June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Share Capital | 6,894,438 | 6,894,438 | | Retained Earnings | 25,889,548 | 24,876,838 | | Total Shareholders' Funds | 34,829,167 | 33,511,956 | Contingent Liabilities and Commitments This section discloses the Group's capital commitments, credit commitments, pledged assets, and operating lease commitments, reflecting off-balance sheet potential risks and obligations Capital Commitments (As of June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Contracted but not provided for | 18,394 | 20,821 | Credit Commitments (As of June 30) | Metric | 2025 Contract Amount (HKD Thousand) | 2024 Contract Amount (HKD Thousand) | | :--- | :--- | :--- | | Commitments that can be unconditionally cancelled without prior notice | 57,570,547 | 57,897,554 | | Credit risk-weighted amount | 5,863,292 | 2,155,128 | Pledged Assets (As of June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Pledged assets held for trading and financial investments as collateral for liabilities | 3,166,990 | 1,143,336 | | Amount of liabilities secured | 3,094,712 | 1,130,231 | Segmental Reporting This section details the Group's business and regional operating performance, segmented by personal banking, corporate banking, treasury and global markets, banking business in Mainland China and Macau, and other segments, in accordance with HKFRS 8 - Personal banking business showed robust performance, with operating income increasing by 13% year-on-year and operating profit after impairment increasing by 26% year-on-year, primarily benefiting from strong growth in wealth management and bancassurance income[75] - Corporate banking business saw a decline in operating income and a 55% year-on-year decrease in operating profit after impairment, mainly due to weak customer loan demand and increased credit impairment losses[75] - Operating profit after impairment for Treasury and Global Markets business increased by 66%, driven by improved investment sentiment, increased customer demand from market volatility, and higher positive fair value changes in trading securities and derivatives[76] Regional Segment Operating Income and Profit Before Tax (For the six months ended June 30) | Region | 2025 Operating Income (HKD Thousand) | 2025 Profit Before Tax (HKD Thousand) | 2024 Operating Income (HKD Thousand) | 2024 Profit Before Tax (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong and Others | 3,616,656 | 1,845,870 | 3,099,933 | 1,536,940 | | Macau | 180,141 | (26,812) | 188,040 | 42,981 | | Total | 3,795,596 | 1,819,057 | 3,286,757 | 1,579,921 | Additional Analysis of Claims and Balances This section provides detailed analysis of customer loans and advances by industry, balances with Mainland China businesses, customer loans and advances by region, and international claims, revealing the Group's credit portfolio structure and risk distribution Gross Loans and Advances to Customers by Industry (As of June 30) | Industry | 2025 Outstanding Balance (HKD Thousand) | 2025 Percentage Secured by Collateral (%) | 2024 Outstanding Balance (HKD Thousand) | 2024 Percentage Secured by Collateral (%) | | :--- | :--- | :--- | :--- | :--- | | Commercial and Industrial Total | 48,514,203 | 69.0 | 50,433,142 | 72.5 | | Individuals Total | 52,877,784 | 80.8 | 51,619,242 | 80.2 | | Loans for use in Hong Kong Total | 101,391,987 | 75.1 | 102,052,384 | 76.4 | | Loans for use outside Hong Kong | 33,501,148 | 57.1 | 31,419,446 | 58.5 | | Total | 139,489,360 | 70.5 | 138,374,285 | 72.0 | Balances with Mainland China Businesses (As of June 30) | Counterparty Category | 2025 On-Balance Sheet Balance (HKD Thousand) | 2025 Total Balance (HKD Thousand) | 2024 On-Balance Sheet Balance (HKD Thousand) | 2024 Total Balance (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Central government and related entities | 5,124,421 | 5,206,020 | 5,198,753 | 5,198,753 | | Local governments and related entities | 992,575 | 1,019,305 | 1,170,713 | 1,537,928 | | Nationals or entities residing in Mainland China | 8,417,138 | 9,394,042 | 7,657,826 | 8,217,137 | | Total Balance | 28,161,158 | 30,230,617 | 28,214,392 | 29,635,526 | | On-balance sheet balance as a percentage of total assets | 11.52% | - | 11.81% | - | Customer Loans and Advances by Geographical Area (As of June 30) | Region | 2025 Gross Customer Loans and Advances (HKD Thousand) | 2025 Impaired Customer Loans and Advances (Stage 3) (HKD Thousand) | 2024 Gross Customer Loans and Advances (HKD Thousand) | 2024 Impaired Customer Loans and Advances (Stage 3) (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 107,664,128 | 3,949,982 | 108,718,160 | 4,018,261 | | Mainland China | 15,654,204 | 184,684 | 13,729,341 | 221,449 | | Macau | 13,251,567 | 215,338 | 13,527,103 | 197,973 | | Total | 139,489,360 | 4,350,004 | 138,374,285 | 4,437,683 | Foreign Exchange Risk This section discloses the Group's net foreign exchange positions in major currencies such as USD, JPY, EUR, and RMB, reflecting its foreign exchange risk exposure - As of June 30, 2025, the Group had no structural foreign currency net positions[65] Net Foreign Exchange Positions by Major Currency (As of June 30) | Currency | 2025 Long/(Short) Net Position (HKD Million) | 2024 Long/(Short) Net Position (HKD Million) | | :--- | :--- | :--- | | USD | 1,605 | 2,238 | | RMB | (143) | (203) | | MOP | (898) | (631) | | Total Foreign Currencies | 187 | 1,456 | Capital Adequacy Ratios This section discloses the Group's capital adequacy ratios, indicating its robust capital position in compliance with Basel III and relevant regulatory requirements Capital Adequacy Ratios (As of June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Common Equity Tier 1 | 18.2% | 16.9% | | Tier 1 | 18.9% | 17.6% | | Total | 22.5% | 21.0% | - The calculation of capital adequacy ratios has considered market risk and operational risk, complying with banking regulatory requirements in Hong Kong, Macau, and Mainland China[67] Liquidity Maintenance Ratio This section discloses the Group's liquidity maintenance ratio, demonstrating its consistently sound liquidity position in compliance with minimum regulatory requirements Liquidity Maintenance Ratio (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Liquidity Maintenance Ratio | 60.7% | 64.7% | - The liquidity maintenance ratio is calculated in accordance with the Banking (Liquidity) Rules and complies with banking regulatory requirements in Hong Kong, Macau, and Mainland China[68] Financial Ratios and Dividends Financial Ratios This section presents the Group's key financial ratios for the six months ended June 30, 2025, including net interest income to operating income, cost-to-income ratio, return on average total assets, return on average shareholders' funds, net interest margin, and loan-to-deposit ratio Key Financial Ratios (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Interest Income / Operating Income | 73.1% | 77.2% | | Cost-to-Income Ratio | 45.0% | 48.5% | | Return on Average Total Assets (Annualized) | 1.2% | 1.1% | | Return on Average Shareholders' Funds (Annualized) | 9.2% | 8.5% | | Net Interest Margin | 2.32% | 2.09% | | Loan-to-Deposit Ratio (As of June 30) | 67.8% | 67.2% | - The cost-to-income ratio improved to 45.0%, indicating progress in the Group's cost control efforts[69] - Net interest margin expanded by 23 basis points to 2.32%, reflecting prudent funding cost management[74] Interim Dividend The Board of Directors announced an interim dividend of HK$0.31 per share for 2025 and provided relevant dividend payment dates - The Board of Directors announced an interim dividend of HK$0.31 per share for 2025[70] - The interim dividend will be paid on September 18, 2025, to shareholders whose names appear on the register of members on September 10, 2025[70] Group and Business Overview Summary Despite external challenges like interest rate uncertainty, a weak property market, and geopolitical tensions, the Hong Kong economy showed resilience in H1 2025, enabling the Group to achieve solid performance through prudent credit risk management, higher net interest margin, and strong fee and trading income - Hong Kong's economy showed resilience in the first half of 2025, with real GDP growing by 3.1% year-on-year in the second quarter[72] - The Group prudently managed credit risk, with the impaired loan ratio slightly improving to 3.12% (3.21% at end-2024)[73] - The Group's profit attributable to shareholders increased by 13% to approximately HK$1.6 billion, with HK$443 million contributed by Chongqing Bank[73] Business and Financial Review The Group's 2025 interim performance was robust, with growth in both net interest and non-interest income, and an improved cost-to-income ratio; however, credit impairment losses increased, mainly for Hong Kong commercial real estate exposure, with personal banking performing strongly while corporate banking faced challenges - Net interest income increased by 9% year-on-year, primarily due to funding costs decreasing faster than asset yields[74] - Non-interest income grew strongly by 36%, with net fee and commission income increasing by 20%, and net trading income and other operating income collectively increasing by 102%[74] - Operating expenses increased by 7%, mainly due to higher IT expenditure and staff costs, but the cost-to-income ratio improved to 45.0%[75] - Credit impairment losses increased by 34% year-on-year, primarily due to prudent provisions for Hong Kong commercial real estate exposure and other corporate loans[75] - Annualized return on average total assets was 1.2%, and annualized return on average shareholders' funds was 9.2%, both higher than the prior period[76] Outlook The Group anticipates continued global market uncertainties and US interest rate policy challenges, with credit costs likely remaining high; despite Hong Kong's economic resilience, the business outlook is not expected to change significantly for the remainder of the year, as the Group remains focused on customers, risk management, and business objectives - Recent US tariffs on multiple countries and interest rate policy uncertainties exacerbate global market ambiguity[77] - The Hong Kong government's enhanced New Capital Investor Entry Scheme is expected to boost private banking and wealth management business development[77] - Credit costs are expected to remain high in 2025, and the business outlook is not anticipated to change significantly for the remainder of the year[78] Other Information Compliance with Corporate Governance Code The Company has applied and complied with the code principles and provisions of the Corporate Governance Code, Part 2 of Appendix C1 to the Listing Rules, during the reporting period - The Company has applied and complied with the code principles and provisions of the Corporate Governance Code, Part 2 of Appendix C1 to the Listing Rules[79] Directors' Securities Transactions Code The Company has adopted a code for directors' securities transactions no less exacting than the Model Code in Appendix C3 of the Listing Rules, and directors have confirmed compliance during the reporting period - The Company has adopted a code for directors' securities transactions no less exacting than the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[80] - Following enquiry, the directors have confirmed compliance with the Model Code and the Company's code for directors' dealings in securities for the six months ended June 30, 2025[80] Unaudited Financial Statements The financial information in this interim results announcement is unaudited and does not constitute statutory financial statements - The financial information in this interim results announcement is unaudited and does not constitute statutory financial statements[81] Review of Financial Statements The Audit Committee and management have reviewed the Group's accounting policies, practices, internal controls, and financial reporting matters, including these interim financial statements - The Audit Committee and management have reviewed the Group's accounting policies and practices, and discussed internal controls and financial reporting matters[82] Purchase, Sale or Redemption of Securities Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025[83] Remuneration and Staff Development The Company's staff remuneration, remuneration policies, and training programs remained substantially unchanged from those disclosed in the 2024 Annual Report - The Company's staff remuneration, remuneration policies, and training programs remained substantially unchanged from those disclosed in the 2024 Annual Report[84] Interim Results Announcement and Interim Report This announcement has been published on the HKEX and Dah Sing Bank websites, and the 2025 interim report containing information specified by the Listing Rules will be released in due course - This announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and Dah Sing Bank (www.dahsing.com)[85](index=85&type=chunk) - The Group's 2025 interim report, containing information specified by the Listing Rules, will be published on the HKEX and Dah Sing Bank websites in due course[85] Board of Directors This section lists the members of the Company's Board of Directors as of the announcement date - The Board of Directors includes Executive Directors Mr. Wong Shou-yeh (Chairman), Mr. Harold Wong (Deputy Chairman, Managing Director and Chief Executive), Mr. Wang Bo-ling, and Mr. Derek Ma (Deputy Chief Executive); Independent Non-executive Directors Mr. So Chak-kwong, Mr. Stephen Tan, Mr. Peter Breese, Mr. David Wai, Ms. Chan Ha-fong, and Mr. Cheung Kin-sang[86]