Financial Performance - Revenue increased by 18% year-on-year to $3.3 billion for the first half of 2023, with a pre-tax profit rise of 29%[5] - Total income for the first half of 2023 was $9 billion, with net interest income up 35% to $4.8 billion[5] - Operating income for the first half of 2023 reached HKD 8,951 million, a 14% increase from HKD 7,859 million in the same period of 2022[9] - The group reported a profit before tax of HKD 3,323 million, representing a 20% increase from HKD 2,772 million in the previous year[21] - The net profit before tax for the first half of 2023 was 3,306 million, compared to 2,651 million in the same period of 2022, indicating an increase of 24.7%[67] - The company reported a net profit of 2,145 million for Q2 2023, reflecting a 15% increase from 1,873 million in Q2 2022[62] - The pre-tax profit before tax increased by 50% to HKD 2,949 million compared to HKD 1,960 million in the first half of 2022[42] Shareholder Returns - The company announced a new share buyback program worth $1 billion to return additional value to shareholders[5] - The bank announced a 50% increase in interim ordinary share dividends, amounting to HKD 168 million[6] - The company aims to return over $5 billion to shareholders from 2022 to 2024, with a total shareholder return of $3.9 billion since early 2022, including a $1 billion share buyback announced recently[17] - The tangible shareholder equity return is targeted to reach 10% for the year[39] Customer Loans and Deposits - Customer loans and advances decreased by $10 billion or 3% since March 31, 2023, totaling $290 billion[5] - Customer deposits increased by $7 billion or 2% since March 31, 2023, reaching $470 billion[5] - Customer loans and advances decreased by HKD 21 billion or 7% to HKD 2,900 billion since December 31, 2022, while customer deposits increased by HKD 8 billion or 2% to HKD 4,700 billion[6] - Total customer loans and advances amounted to 295,508 million, a decrease of 3% from 305,975 million in the previous quarter[31] Credit Quality and Impairments - Credit impairment charges for Q2 2023 were $146 million, an increase of $80 million year-on-year[5] - Credit impairment charges decreased by HKD 92 million year-on-year to HKD 172 million, with a loan loss rate of 11 basis points compared to 15 basis points in the same period last year[6] - Credit impairment decreased by 35% to HKD 172 million from HKD 264 million year-on-year, contributing to a pre-tax profit increase of 29% to HKD 3,300 million[10] - The annualized loan loss rate increased by 12 basis points to 2.6%, indicating a faster reduction in total customer loans compared to the third stage loans[32] Operating Expenses and Efficiency - Operating expenses rose by 8% year-on-year to $5.5 billion, with a cost-to-income ratio improving by 3 percentage points to 61%[5] - The cost-to-income ratio for personal, private, and SME banking improved by 14 percentage points year-on-year to 58%, aligning with the target of 60% by 2024[6] - The cost-to-income ratio improved to 48.4% in the first half of 2023, down from 58.4% in the same period last year[40] - The total operating expenses for the first half of 2023 were 5,504 million, compared to 5,096 million in the same period of 2022, reflecting an increase of 8%[67] Capital and Liquidity - The common equity tier 1 capital ratio remained strong at 14.0%, reaching the top end of the 13-14% target range[6] - The liquidity coverage ratio remained high at 164%, well above the minimum regulatory requirement, indicating strong capital and liquidity positions[22] - The liquidity coverage ratio improved to 164% as of June 30, 2023, up from 147% at the end of 2022, indicating strong liquidity management[78] Market and Regional Performance - The Asia region contributed 2,749 million to pre-tax profit, reflecting a 55% increase[26] - The bank's sustainable finance business grew with a 37% year-on-year increase in revenue and an 8% increase in assets since December 31, 2022[7] - The cross-border income from corporate, commercial, and institutional banking increased by 44%, with significant growth in China at 59%[11] - The bank's financial markets business reported a loss of 393 million, impacted by structural and short-term hedging losses[25] Strategic Initiatives and Future Outlook - The company plans to open an office in Egypt in the second half of the year, pending regulatory approval, and has seen over 140% revenue growth in Saudi Arabia's corporate banking since opening its first branch in June 2021[18] - The company is positioned as a leading offshore RMB bank and a major USD settlement bank in New York, reflecting its strong ties to rapidly growing markets in Asia, Africa, and the Middle East[19] - The company expects tangible shareholder equity returns to reach 10% in 2023 and exceed 11% in 2024, with continued growth anticipated thereafter[20] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[60]
渣打集团(02888) - 2023 - 中期财报