2025-09-15 08:36Financial Performance - For the six months ended June 30, 2025, net interest income increased by 8.5% to HK$2,814,941,000 compared to HK$2,594,639,000 in 2024[4]. - Net fee and commission income rose by 21.1% to HK$720,488,000 from HK$594,753,000 year-over-year[4]. - Total operating income grew by 21.2% to HK$4,112,370,000, up from HK$3,392,598,000 in the previous year[4]. - Operating profit before impairment losses increased by 31.7% to HK$2,330,669,000 compared to HK$1,769,951,000 in 2024[4]. - Profit for the period reached HK$1,810,839,000, a 23.2% increase from HK$1,470,192,000 in the same period last year[4]. - Basic earnings per share rose to HK$4.41 from HK$3.49, reflecting a significant increase[4]. - Total comprehensive income for the period, net of tax, was HK$2,495,467,000, compared to HK$2,092,884,000 in 2024, marking a substantial growth[6]. - The company reported a profit before taxation of HK$2,060,136,000, which is a 24.2% increase from HK$1,658,124,000 in the previous year[4]. Assets and Liabilities - Total assets increased to HK$271,808,230, up from HK$266,523,315 as of December 31, 2024, representing a growth of 2.3%[7]. - Total liabilities increased to HK$226,624,310, up from HK$223,325,171, indicating a growth of 1.1%[7]. - The company's equity attributable to shareholders increased to HK$36,289,934, up from HK$34,641,754, marking a growth of 4.7%[7]. - Cash and balances with banks rose to HK$15,203,720, an increase of 1.3% from HK$15,009,807[7]. - Customer deposits reached HK$203,115,079, reflecting a growth of 1.3% compared to HK$200,599,432[7]. Cash Flow - Net cash from operating activities for 2025 was HK$2,592,873, a decrease of 11.2% from HK$2,919,591 in 2024[12]. - Net cash used in investing activities was HK$71,758, a significant improvement from HK$141,107 in 2024[12]. - Net cash used in financing activities decreased to HK$738,074 from HK$2,865,323 in 2024, indicating a reduction in financing outflows[12]. - Cash and cash equivalents at the end of the period increased to HK$15,289,042 from HK$20,159,620 in 2024, reflecting a net increase of HK$1,783,041[12]. Investment and Securities - The investment properties increased to HK$721,917, up from HK$671,692, reflecting a growth of 7.5%[7]. - The company’s trading securities rose to HK$3,332,932, an increase of 66% from HK$2,006,353[7]. - The total debt securities held as of June 30, 2025, is HK$45,115,692, an increase from HK$43,204,104, reflecting a growth of approximately 4.4%[112]. - The total equity securities increased to HK$8,697,449,000 from HK$8,047,631,000, marking an increase of about 8.0%[112]. Impairment and Allowances - New allowances net of allowance releases increased to HK$780,339,000 in 2025 from HK$582,258,000 in 2024, representing a rise of approximately 34%[52]. - Total impairment allowances for loans and advances increased to HK$1,917,097 as of June 30, 2025, compared to HK$1,532,345 as of December 31, 2024[89]. - The total impairment allowances for Stage 3 loans increased to HK$1,158,920 as of June 30, 2025, from HK$872,989 as of December 31, 2024[89]. - The estimated realizable value of certain properties in Mainland China was HK$56,184,000 as of December 31, 2024, which was nil as of June 30, 2025[104]. Dividends and Shareholder Information - The company paid a final dividend of HK$376,452 for the year 2024, impacting retained earnings[10]. - The proposed dividend included in retained earnings as of June 30, 2025, was HK$370,071,000, slightly down from HK$376,452,000 as of December 31, 2024[143]. - The weighted average number of ordinary shares in issue during the period was 319,112,928 in 2025, slightly up from 318,989,131 in 2024[69]. Regulatory and Compliance - Management is currently assessing the implications of HKFRS 18, which will enhance comparability and transparency in financial reporting starting January 1, 2027[29]. - The Group's financial statements for 2024 were unqualified, indicating no significant issues raised by auditors[19]. Operating Segments - The operating segments include personal banking, corporate banking, and treasury and global markets, with performance evaluated based on business activities and entities[192]. - The Group's insurance and investment operations are managed through wholly-owned subsidiaries in Hong Kong and Macau, offering a variety of products and services[198]. - The Group's operating segments are reported based on customer, product, and service revenues directly identifiable with each segment[196].