大新金融(00440) - 2022 - 中期财报

Financial Performance - For the six months ended June 30, 2022, net interest income increased by 3.0% to HK$2,027,699,000 compared to HK$1,968,209,000 in 2021[9]. - Net fee and commission income decreased by 25.2% to HK$475,194,000 from HK$635,574,000 in the previous year[9]. - Operating profit before impairment losses decreased by 20.4% to HK$969,991,000 compared to HK$1,218,130,000 in 2021[9]. - Profit for the period was HK$1,114,736,000, a decrease of 4.5% from HK$1,166,914,000 in the same period last year[11]. - Earnings per share (basic and diluted) decreased to HK$2.61 from HK$2.76 in 2021[9]. - Total comprehensive income for the period, net of tax, was a loss of HK$565,220,000 compared to a profit of HK$1,552,104,000 in the previous year[11]. - Operating expenses decreased by 3.9% to HK$2,766,213,000 from HK$2,878,982,000 in the previous year[9]. - The bank's total operating income net of insurance claims was HK$2,915,987,000, a decrease of 4.3% from HK$3,048,089,000 in the previous year[9]. Asset and Liability Management - Total assets as of June 30, 2022, increased to HKD 262,079,636 thousand, up from HKD 256,530,989 thousand as of December 31, 2021, representing a growth of approximately 2.1%[13]. - Total liabilities increased to HKD 225,138,117 thousand as of June 30, 2022, from HKD 218,704,642 thousand at the end of 2021, marking an increase of about 2.0%[13]. - The equity attributable to the company's shareholders decreased to HKD 29,365,120 thousand from HKD 30,192,382 thousand, a decline of approximately 2.7%[13]. - The company’s cash and balances with banks increased to HKD 22,711,422 thousand, up from HKD 12,791,862 thousand, showing a significant rise of approximately 77.5%[13]. - The total amount of debt securities included HKD 499,058 in treasury bills and HKD 2,318,406 in other treasury bills as of June 30, 2022[59]. Credit and Impairment - Credit impairment losses increased by 4.4% to HK$1,275,629,000 from HK$1,334,919,000 in 2021, reflecting a significant rise of 161.7% in the impairment loss ratio[9]. - New credit impairment losses for the six months ended June 30, 2022, were HKD 305,638 thousand, significantly higher than HKD 116,789 thousand in 2021, marking an increase of 161.5%[41]. - The total amount of recoveries of amounts previously written off was HKD 30,096 thousand in 2022, down from HKD 41,076 thousand in 2021, a decrease of 26.5%[41]. - The total expected credit loss (ECL) allowance was HKD 1,567,111 thousand, a decrease from HKD 1,491,551 thousand at January 1, 2022, representing a change of approximately 5.06%[82]. - The ECL allowance for Stage 3 increased significantly from HKD 547,609 thousand to HKD 756,499 thousand, an increase of around 37.9%[82]. Cash Flow and Liquidity - Cash flows from operating activities showed a significant improvement, with net cash from operating activities reaching HK$5,731,318, compared to a net cash used of HK$2,501,193 in the previous year[20]. - The total cash and cash equivalents at the end of the period increased to HK$21,731,658, up from HK$16,722,848 in 2021, reflecting a strong liquidity position[20]. - The Group's cash and balances with banks included HK$3,564,318 in cash and short-term deposits, slightly down from HK$3,845,125 in the previous year[20]. Market and Operational Strategy - The Group continues to explore opportunities for market expansion and new product development to enhance its competitive position in the financial services sector[24]. - The Group's insurance business includes a variety of insurance products and services offered through wholly-owned subsidiaries in Hong Kong and a 100% owned subsidiary in Macau[152]. - The corporate banking business includes the acceptance of deposits and the advancement of loans to commercial, industrial, and institutional customers, highlighting the Group's focus on business financing[151]. - The treasury and global markets activities primarily involve foreign exchange services and centralized cash management, indicating a strategic emphasis on managing liquidity and risk[151]. Risk Management - The Group focuses on managing various types of risks including credit risk, market risk, interest rate risk, liquidity risk, operational risk, reputation risk, and strategic risk[195]. - The Group's independent Risk Division is responsible for establishing policies and monitoring risk positions, ensuring financial risks are considered in product planning and pricing[199]. - The Group Credit Committee is responsible for approving significant credit limits, while the Credit Management Committee oversees loan and treasury business policies and risk controls[200]. - The Group continuously enhances its risk management capabilities to adapt to changing regulatory requirements and manage credit-related risks and returns confidently[199].