DAHSING BANKING(HK:02356)2023-03-31 04:06Financial Performance - Net interest income increased by 11.1% to HK$4,383,060 thousand from HK$3,944,276 thousand in 2021[3] - Service fee and commission income surged by 87.8% to HK$2,249,095 thousand compared to HK$1,197,423 thousand in the previous year[3] - Operating income rose by 26.8% to HK$6,826,270 thousand from HK$5,384,192 thousand in 2021[3] - Operating profit before impairment losses increased by 61.2% to HK$3,810,260 thousand, up from HK$2,362,993 thousand[3] - The bank's annual profit for 2022 was HKD 1,657,556 thousand, up from HKD 1,257,556 thousand in 2021, reflecting a growth of approximately 31.7%[10] - The annual profit for the year ended December 31, 2022, was HKD 1,608,800, with a significant contribution from personal banking[9] - Basic earnings per share decreased to HK$1.14 from HK$1.18 in 2021, reflecting a decline of 2.9%[3] Asset and Liability Management - Total assets reached HK$252,086,033 thousand, an increase from HK$248,979,190 thousand in the previous year[5] - Customer deposits rose to HK$199,792,201 thousand, compared to HK$196,134,565 thousand in 2021[5] - Total liabilities increased to HKD 218,167,687 thousand in 2022 from HKD 198,167,687 thousand in 2021, reflecting a growth of about 10.1%[10] - The total assets of the group as of December 31, 2022, were HKD 252,086,033, while total liabilities were HKD 221,860,885[9] Credit and Impairment - Credit impairment losses jumped by 115.1% to HK$803,100 thousand from HK$373,343 thousand in 2021[3] - The group reported a credit impairment loss of HKD 803,100, impacting the overall profitability[9] - The bank's credit impairment losses for 2022 were HKD 373,343 thousand, a decrease from HKD 1,443,000 thousand in 2021, showing an improvement in asset quality[10] - The percentage of credit-impaired loans and advances to total customer loans and advances increased to 1.86% in 2022 from 0.97% in 2021[27] Income Composition - Net interest income for personal banking was HKD 1,890,619, corporate banking was HKD 1,183,415, global markets was HKD 918,047, and overseas banking was HKD 485,207, totaling HKD 4,383,060[9] - Non-interest income amounted to HKD 2,102,346, with contributions from various segments including HKD 188,591 from corporate banking and HKD 33,839 from global markets, leading to a total of HKD 2,443,210[9] - The net interest income to operating income ratio decreased to 64.2% in 2022 from 73.3% in 2021, reflecting a shift in revenue composition[56] Dividend and Shareholder Returns - The company proposed a final dividend of HK$407,668 thousand, compared to HK$337,380 thousand in the previous year[3] - The final dividend for the year was declared at HKD 0.39 per share, representing a growth of 14.7%[59] - The proposed final dividend included in retained earnings was HKD 407,668,000 for 2022, compared to HKD 337,380,000 in 2021, representing an increase of approximately 20.8%[33] Operational Efficiency - The bank's operating expenses for 2022 totaled HKD 3,021,199 thousand, an increase from HKD 2,021,199 thousand in 2021, reflecting a growth of approximately 49.5%[10] - Employee compensation and benefits increased to HKD 1,939,833,000 in 2022, up 3.5% from HKD 1,873,517,000 in 2021[15] Governance and Compliance - The company has adhered to the Corporate Governance Code, except for the provision F.2.2 regarding the attendance of the chairman at the annual general meeting due to COVID-19 restrictions[63] - The company confirmed that all directors complied with the Securities Trading Code during the year ended December 31, 2022[64] - The Audit Committee reviewed the accounting standards and practices, including the consolidated financial statements for the year ended December 31, 2022[65] Market Outlook and Strategic Initiatives - The company expects a cautious outlook for 2023 due to global market volatility and economic uncertainties, despite some improvement in core markets[62] - The Shenzhen branch is anticipated to commence full operations in 2023, marking the company as the first non-mainland Chinese bank group to operate branches and subsidiaries in mainland China[62] - A new partnership with Yongming Financial was announced, aiming to reintroduce life insurance services and a range of financial products in the second half of the year[62]