恒生银行(00011) - 2021 - 年度财报

Financial Performance - The bank reported a profit attributable to shareholders of HKD 13,960 million for the year, down from HKD 16,687 million in 2020, representing a decrease of approximately 16.4%[6]. - The bank's operating profit was HKD 16,231 million, compared to HKD 20,125 million in 2020, reflecting a decline of about 19.1%[6]. - The average return on ordinary shareholders' equity decreased to 7.7% from 9.6% in the previous year[6]. - The bank achieved a 16% decrease in shareholder profit for 2021, amounting to HKD 13.96 billion, primarily due to increased expected credit loss provisions and low interest rates impacting net interest income[26]. - The company's net profit attributable to shareholders for 2021 was HKD 139.60 billion, with a total dividend of HKD 5.10 per share[15]. - Pre-tax profit declined by 16% to HKD 16.385 billion, with earnings per share down 17% to HKD 6.93[32]. - Operating income before expected credit loss changes decreased by HKD 1.470 billion, or 8%, to HKD 15.856 billion, primarily due to a 28% decline in non-interest income in the second half of the year[95]. Asset and Loan Growth - The bank's total assets increased to HKD 1,820,185 million, up from HKD 1,759,787 million in 2020, marking a growth of approximately 3.4%[6]. - Total customer loans rose by 6% to HKD 1,004 billion compared to the end of 2020[32]. - Customer loans increased by HKD 53 billion, or 6%, to HKD 997.4 billion, with personal loans rising by 8% and trade finance loans increasing by 57%[112]. - New mortgage loans grew by 34% year-on-year, outperforming the market, while credit card spending rose by 10%[28]. - The total amount of loan commitments and other related credit commitments rose to 649,961 million in 2021, up from 556,503 million in 2020, marking an increase of approximately 16.8%[194]. Non-Interest Income and Revenue Streams - Non-interest income grew by 2% year-on-year, totaling HKD 93.6 billion, despite increased market uncertainties in the second half of the year[30]. - Non-interest income increased by 8%, amounting to HKD 5.493 billion, driven by enhanced digital banking services[45]. - Wealth management and personal banking business saw an 11% year-on-year growth in wealth management income, driven by enhanced data analytics and digital banking services[27]. - Insurance business revenue increased by 17% due to the launch of new products catering to customer needs in life protection and wealth transfer planning[28]. - The investment return from the life insurance fund increased by HKD 2.155 billion, or 298%, to HKD 2.879 billion, attributed to proactive management of the investment portfolio[91]. Digital Transformation and Innovation - The bank continues to invest in digital technology to enhance service capabilities and meet customer wealth management needs[14]. - The bank launched over 250 digital innovation services for corporate clients, resulting in a more than 100% increase in average monthly customer acquisition[30]. - The number of personal mobile banking app users increased by 12%, with login frequency growing by 26% and online transaction volume rising by 44%[45]. - The company launched 415 digital innovation services and features during the year, enhancing customer experience[47]. - The bank launched a virtual account service to enhance core banking services, allowing customers to manage collections and reconciliations more efficiently[106]. Risk Management and Compliance - The bank's risk management strategy emphasizes sustainable business practices and includes considerations for social, environmental, and economic factors[118]. - The company conducts regular reviews of its actual risk tolerance against limits set by the risk appetite statement, allowing senior management to monitor risk conditions and guide business activities[129]. - The compliance department is responsible for managing regulatory compliance and financial crime risks[127]. - The company is enhancing fraud and monitoring measures by applying advanced analytics and artificial intelligence to combat financial crime[150]. - The company has established processes for identifying, assessing, monitoring, managing, and reporting risks[125]. Community and Sustainability Initiatives - The bank is committed to community support through various projects focused on youth skills, sustainable finance, and climate change response[5]. - The bank is committed to becoming a leader in ESG, having made significant progress in 2021, including a commitment to achieve carbon neutrality by 2030[17]. - The bank plans to enhance its ESG performance and aims for carbon neutrality by 2030[33]. - The company is actively promoting green and sustainable financing as a key growth strategy[12]. - The company supports the goals of the Paris Agreement and is strengthening its climate risk management capabilities to assist clients in transitioning to a low-carbon economy[152]. Economic Outlook and Market Conditions - The company has reported a decrease in overall economic activity and global trade trends, impacting the banking sector for the second consecutive year[14]. - The center scenario predicts a GDP growth rate of 3.1% for Hong Kong and 5.3% for mainland China in 2022, with a five-year average growth rate of 2.7% and 5.1% respectively from 2022 to 2026[200]. - The unemployment rate is expected to average 4.1% in Hong Kong and 3.8% in mainland China for 2022, with a five-year average of 3.6% for Hong Kong and 3.8% for mainland China from 2022 to 2026[200]. - The company anticipates that fiscal support related to COVID-19 will diminish in 2022 as economic activity restrictions ease[200]. - The probability assigned to the center scenario is 70% for Hong Kong and 80% for mainland China, indicating a higher confidence in these forecasts[200].