DAHSING BANKING(HK:02356)2025-09-15 09:03Financial Performance - Net interest income for the six months ended June 30, 2025, increased by 9.4% to HK$2,776,458,000 compared to HK$2,538,695,000 in 2024[5] - Net fee and commission income rose by 20.4% to HK$726,763,000 from HK$603,386,000 year-on-year[5] - Operating profit before impairment losses grew by 23.4% to HK$2,088,521,000, up from HK$1,691,892,000 in the previous year[5] - Profit attributable to shareholders increased by 13.1% to HK$1,578,850,000 compared to HK$1,396,074,000 in 2024[5] - The bank's operating income for the period was HK$3,795,596,000, reflecting a 15.5% increase from HK$3,286,757,000 in 2024[5] - The profit for the period ended June 30, 2025, was HK$1,578,850,000, representing an increase from HK$1,396,074,000 for the same period in 2024, which is a growth of approximately 13%[10] - Basic earnings per share for the six months ended June 30, 2025, were HK$1,578,850,000, up from HK$1,396,074,000 in 2024, indicating a growth of 13.0%[64] - Profit before taxation for the six months ended June 30, 2025, was HK$1,819,057, compared to HK$1,579,921 in 2024, indicating an increase of about 15.2%[198] Assets and Liabilities - Total assets as of June 30, 2025, amounted to HK$260,683,805,000, a rise from HK$256,339,081,000 at the end of 2024[8] - Customer deposits reached HK$203,954,890,000, up from HK$201,568,051,000 in the previous period[8] - Total equity increased to HK$35,140,583,000 from HK$33,823,372,000 year-on-year[8] - The bank's cash and balances with banks stood at HK$14,896,976,000, compared to HK$14,131,725,000 at the end of 2024[8] - Total liabilities were reported at HK$225,543,222, with a notable increase in subordinated notes to HK$4,273,505[160] - The total amount of trading securities listed in Hong Kong was HK$4,899,000 as of June 30, 2025, down from HK$9,790,000 at the end of 2024[69] - The total gross loans and advances amounted to HK$139,489,360, an increase from HK$138,374,285 as of December 31, 2024[84] Income and Expenses - Total operating expenses amounted to HK$1,707,075,000 in 2025, compared to HK$1,594,865,000 in 2024, reflecting an increase of 7.0%[48] - Employee compensation and benefit expenses rose to HK$1,227,675,000 in 2025, up from HK$1,113,239,000 in 2024, an increase of 10.3%[48] - The operating expenses for the six months ended June 30, 2025, totaled HK$1,707,075, compared to HK$1,594,865 in 2024, representing an increase of approximately 7.0%[194] Credit and Impairment - Credit impairment losses rose by 33.8% to HK$728,082,000 from HK$544,007,000 in the previous year[5] - New credit impairment allowances net of releases increased to HK$779,270,000 in 2025 from HK$582,402,000 in 2024, reflecting a rise of 33.8%[50] - The total impairment allowances increased to HK$1,917,097 as of June 30, 2025, compared to HK$1,532,345 as of December 31, 2024[84] - Credit-impaired loans and advances decreased to HK$4,350,004 as of June 30, 2025, from HK$4,437,683 as of December 31, 2024, representing 3.12% of total loans[84] Dividends and Shareholder Returns - The company paid a final dividend of HK$548,243,000 for 2024, which is a decrease from HK$688,818,000 for 2023, indicating a reduction of about 20%[13] - Retained earnings increased to HK$25,889,548,000 as of June 30, 2025, compared to HK$24,876,838,000 as of December 31, 2024, reflecting a growth of about 4.1%[140] Cash Flow and Liquidity - Cash flows from operating activities for the six months ended June 30, 2025, were HK$2,016,466,000, compared to a cash outflow of HK$1,958,962,000 in 2024, indicating a significant turnaround[13] - The net cash used in investing activities was HK$69,267,000 for the first half of 2025, compared to HK$140,599,000 in the same period of 2024, showing an improvement in cash management[13] - The net liquidity gap was reported at HK$35,140,583, indicating a strong liquidity position[160] Market and Investment Performance - The other comprehensive income for the period was HK$304,501,000, a significant increase compared to HK$54,118,000 in the same period of the previous year[10] - Net gain from foreign currency trading increased significantly to HK$242,992,000 in 2025 from HK$89,746,000 in 2024, representing a growth of 170%[44] - The company reported a total of HK$46,733,586 in financial assets at fair value through other comprehensive income, reflecting strong investment performance[160] Regulatory and Compliance - The Group does not expect the amendments to accounting standards effective from January 1, 2025, to have a material impact on its operations or financial statements[24] - The Group's management is currently assessing the implications of the new HKFRS 18, which will replace HKAS 1 and is expected to enhance comparability and transparency in financial reporting[30]