BANK OF E ASIA(00023)2024-02-21 04:01Financial Performance - The Bank of East Asia reported a net interest income of HKD 16,874 million for 2023, an increase of 24.5% from HKD 13,508 million in 2022[3]. - Total operating income for 2023 was HKD 20,746 million, up 15.7% from HKD 17,954 million in 2022[3]. - The net profit for the year was HKD 4,136 million, a decrease of 5.5% compared to HKD 4,378 million in 2022[4]. - Basic and diluted earnings per share remained stable at HKD 1.32 for both 2023 and 2022[4]. - The pre-tax profit for the year ended December 31, 2023, was HKD 5,310 million, an increase from HKD 4,941 million in 2022, representing a growth of 7.5%[10]. - The total operating profit after impairment losses was HKD 5,099 million, reflecting the overall performance of the segments[46]. - The bank's attributable profit to shareholders decreased by 5.5% year-on-year[70]. - Total operating income increased by 15.5% to HKD 20.746 billion[73]. - The bank's cost-to-income ratio improved by 5.9 percentage points to 45.5%[73]. - The bank's return on equity (ROE) improved to 12%, up from 10% in the previous year, reflecting stronger profitability[124]. Assets and Liabilities - The total assets of the Bank decreased to HKD 860,361 million in 2023 from HKD 882,825 million in 2022, reflecting a decline of 2.5%[6]. - The Bank's total liabilities decreased to HKD 752,035 million in 2023 from HKD 776,479 million in 2022, a decline of 3.1%[7]. - The total equity attributable to shareholders increased to HKD 97,973 million in 2023 from HKD 95,987 million in 2022, an increase of 2.1%[7]. - The total cash and cash equivalents decreased to HKD 92,134 million as of December 31, 2023, down from HKD 112,149 million at the beginning of the year, a decline of 17.9%[11]. - The total amount of other assets, net of impairment provisions, was HKD 38.45 billion in 2023, down from HKD 39.21 billion in 2022[44]. Customer Loans and Advances - Customer loans and advances amounted to HKD 526,984 million, down from HKD 542,394 million in 2022, a decrease of 2.8%[6]. - Total customer loans and advances amounted to HKD 532.11 billion, with overdue loans exceeding three months at HKD 8.08 billion, representing 2.69% of total customer loans[37][38]. - Total customer loans decreased by 3.1% to HKD 532.111 billion, reflecting a cautious approach to new loan approvals[75]. - Total customer loans and advances in Hong Kong amounted to HKD 253,047 million in 2023, with a collateralized loan percentage of 79.19%, compared to HKD 261,051 million and 78.07% in 2022[33]. - The total loans for personal housing in Hong Kong were HKD 96,147 million in 2023, with a collateralized loan percentage of 99.53%, compared to HKD 91,944 million and 99.95% in 2022[33]. Dividends and Share Repurchases - The Bank declared a dividend of HKD 0.54 per share for 2023, down from HKD 0.81 per share in 2022[4]. - The company repurchased 36 million shares at a total cost of HKD 366 million during the year, with total expenses including direct transaction costs amounting to HKD 367 million deducted from retained earnings[8]. - The total dividend declared for 2023 was HKD 1,434 million, compared to HKD 2,180 million in 2022, showing a decrease of approximately 34.2%[17]. - The bank repurchased a total of 35,940,800 shares during the year, with a total cost of approximately HKD 365.53 million, reflecting a strategic move to enhance shareholder value[67]. Operating Expenses and Income - Operating expenses totaled HKD 9,432 million in 2023, up from HKD 9,224 million in 2022, reflecting an increase of 2.3%[27]. - Service fee and commission income totaled HKD 3,361 million in 2023, slightly down from HKD 3,372 million in 2022, representing a decrease of 0.3%[24]. - The bank's impairment losses on financial instruments decreased by HKD 440 million, or 7.4%, to HKD 5.483 billion[73]. Risk Management and Compliance - The bank emphasizes a strong risk management culture, with all employees responsible for managing risks[94]. - The group has established a comprehensive risk management framework to ensure effective risk governance and accountability[102]. - The group is actively managing credit risk to maintain asset quality, particularly in high-risk sectors, and is closely monitoring the real estate market's status[111]. - The group is prepared to meet compliance requirements in a changing regulatory environment, focusing on anti-money laundering and customer protection[114]. Future Outlook and Strategic Initiatives - The bank plans to achieve net-zero operational emissions by 2030 and net-zero business emissions by 2050[71]. - The bank is exploring potential acquisitions to enhance its service offerings and market share, with a focus on fintech companies[124]. - Future earnings guidance suggests a growth rate of 5-7% for the next fiscal year, supported by strategic investments and market expansion[124]. - The bank plans to expand its market presence in the Greater Bay Area, targeting a 20% increase in customer base by 2025[123].