Financial Performance - For the year ended December 31, 2023, total operating income was HKD 1,238,629,000, a decrease of 9.8% from HKD 1,373,944,000 in 2022[4] - The pre-tax operating profit decreased to HKD 40,631,000 in 2023 from HKD 406,509,000 in 2022, representing a decline of 90%[4] - The company reported a profit for the year of HKD 14,381,000 in 2023, significantly down from HKD 328,697,000 in 2022[4] - The company's basic earnings per share for 2023 were HKD 0.013, a decrease from HKD 0.299 in 2022[30] - The group’s total comprehensive income for the year was HKD 66.78 million, down from HKD 250.94 million in the previous year[116] - The company's basic and diluted earnings per share for 2023 were HKD 0.013, down from HKD 0.299 in 2022, reflecting a decline of 95.6%[130] Assets and Liabilities - The total assets as of December 31, 2023, were HKD 40,954,692,000, down from HKD 41,917,931,000 in 2022, a decrease of 2.3%[7] - The total liabilities decreased to HKD 32,276,268,000 in 2023 from HKD 33,273,351,000 in 2022, a decline of 3%[7] - The total amount of customer loans and receivables, net of impairment provisions, amounted to HKD 23,947,182,000 in 2023, down from HKD 24,679,582,000 in 2022[33] - The total value of financial assets amounted to HKD 37.38 billion, with cash and short-term deposits totaling HKD 3.72 billion[1] - The total value of financial liabilities reached HKD 32.66 billion, with customer deposits accounting for HKD 29.54 billion[1] Income and Expenses - Net interest income for 2023 was HKD 1,958,740,000, up 30.5% from HKD 1,500,836,000 in 2022[11] - Total operating expenses for 2023 amounted to HKD 843,100,000, compared to HKD 823,618,000 in 2022, reflecting an increase in operational costs[20] - Employee costs, including salaries and other employee-related expenses, rose to HKD 507,041,000 in 2023 from HKD 485,198,000 in 2022[20] - Total rental income for 2023 was HKD 20,259,000, an increase from HKD 16,203,000 in 2022, resulting in a net rental income of HKD 20,186,000 compared to HKD 16,129,000 in the previous year[14] - The total amount of expected credit losses for the third stage was HKD 315,942,000 in 2023, indicating a substantial increase in credit impairment[23] Credit and Risk Management - The net credit loss expense for customer loans in 2023 was HKD 319,634,000, a significant increase from HKD 129,744,000 in 2022, indicating a rise in credit risk[23] - The overdue customer loans for 2023 totaled HKD 923,613,000, representing 3.82% of total customer loans, compared to HKD 1,238,856,000 or 5.00% in 2022[38] - The ratio of impaired loans to total customer loans increased to 3.66%, primarily due to one large commercial borrower's impairment[118] - The company strategically focused on the secured lending market to manage credit risk amid a challenging operating environment[107] - The company has seen a rise in the amount of loans that are overdue but not impaired, which stood at HKD 929,948 in 2023 compared to HKD 1,245,696 in 2022[47] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.03 per share for 2023, down from HKD 0.05 in 2022, totaling HKD 32,938,000[28] - The company did not declare a second interim dividend or a final dividend for the year, reflecting a cautious approach due to operational uncertainties[108] Economic Environment and Future Outlook - The overall economic environment in Hong Kong remains challenging despite slight improvements due to the easing of pandemic measures and border reopening[66] - The company expects slow recovery in the Hong Kong and mainland China economies in 2024, with loan growth momentum continuing to be constrained[147] - The company aims to seek reasonable loan growth while managing funding costs to increase net interest income[149] - The company plans to enhance its retail and commercial banking business through its extensive branch network and optimize existing products and services[149] Regulatory Compliance and Financial Reporting - The group has complied with the capital regulations set by the Monetary Authority regarding capital base and capital adequacy ratios during the reporting period[164] - The group has adopted new and revised Hong Kong Financial Reporting Standards, including HKFRS 17 and HKAS 1, which impact the disclosure of accounting policies[174] - The group plans to apply the revised Hong Kong Financial Reporting Standards when they become effective, with no significant impact expected on the financial statements[179]
大众金融控股(00626) - 2023 - 年度业绩