Financial Performance - Revenue increased by 18% year-on-year to 33 billion, with a pre-tax profit rise of 29%[3] - Q2 2023 revenue rose 20% to 46 billion, with a 24% increase on a constant currency basis[3] - Pre-tax basic profit reached HKD 33 billion, up 29% on a constant currency basis, marking the highest level since 2015[4] - Operating income for the six months ended June 30, 2023, was $8,951 million, a 14% increase from $7,859 million in the same period last year[5] - The group’s pre-tax operating profit increased by 29% year-on-year to HKD 3.3 billion, with revenue growth of 18% on a constant currency basis[21] - The company reported a strong financial performance for the first half of 2023, with a basic net interest income of HKD 4,777 million, a 29% increase from HKD 3,694 million in the same period of 2022[19] - The company reported a pre-tax profit of 3,306 million, with corporate banking at 2,915 million and personal banking at 1,373 million[37] Shareholder Returns - Tangible shareholder return for Q2 2023 was 12.1%, up 4 percentage points year-on-year[3] - The company announced a new share buyback plan to return an additional 1 billion to shareholders[3] - The company announced a 50% increase in interim ordinary share dividends, amounting to HKD 1.68 billion[4] - The group announced an interim ordinary share dividend of HKD 0.06 per share, a 50% increase from the previous period, alongside a new HKD 1 billion share buyback plan[21] - The company announced a further share buyback of $1 billion, continuing its commitment to return capital to shareholders[7] - The company announced a share buyback of 1 billion, contributing to a total shareholder return of 3.9 billion since the beginning of 2022[15] Customer Loans and Deposits - Customer loans and advances decreased by 3% to 2.9 trillion since March 31, 2023[3] - Customer deposits increased by 2% to 4.7 trillion since March 31, 2023[3] - Customer loans and advances amounted to HKD 2,900 billion, a decrease of HKD 210 billion or 7% since December 31, 2022[4] - Customer deposits increased to HKD 4,700 billion, up HKD 80 billion or 2% since December 31, 2022[4] - Customer loans and advances decreased by 7% to $290,137 million from $310,647 million year-on-year[5] - The net customer loans and advances as of June 30, 2023, were 290.14 billion, a decrease of 3% from March 31, 2023[28] Credit and Impairment - Credit impairment charges were 1.46 billion, up 80 million year-on-year[3] - Credit impairment decreased by 35% to $172 million from $264 million year-on-year, contributing to a pre-tax profit increase of 29% to $3,306 million[5] - Credit impairment charges totaled 172 million, with corporate banking at 69 million and personal banking at 108 million[37] - Credit impairment charges for the first half of 2023 amounted to 1.72 billion, a decrease of 35% year-on-year[27] - The annualized loan loss rate increased by 12 basis points to 2.6% for the first half of 2023[28] Operating Expenses and Efficiency - Total expenses increased by 8% year-on-year to HKD 55 billion, with a 12% rise on a constant currency basis[4] - The cost-to-income ratio improved to 61.5%, down from 64.9%, reflecting a 345 basis points reduction[5] - Operating expenses increased by 8%, with a 12% rise on a constant currency basis, attributed to strategic investments in wealth management and sustainable finance[21] - The cost-to-income ratio was highlighted as a key performance indicator, reflecting the total operating expenses relative to total operating income[70] Market and Business Growth - The company expects revenue growth of 12-14% on a constant currency basis for 2023[4] - The company reported that 19 markets achieved record revenue in the first half of the year, with 17 markets also reaching record profits[7] - Cross-border income from corporate, commercial, and institutional banking increased by 44% in the first half of the year, with a notable 59% growth in China[8] - The affluent client business generated a net new fund inflow of 13 billion, more than doubling compared to the same period last year[8] - Approximately 450,000 new customers were acquired in the retail banking sector, with an additional 100,000 customers upgraded to affluent status[8] Risk Management and Regulatory Compliance - The company actively monitors sovereign risks in emerging markets, particularly in Pakistan, Zambia, and Sri Lanka, with ongoing debt restructuring efforts noted[72] - The company is enhancing its digital asset risk management capabilities, recognizing the importance of emerging regulations and risk assessments[74] - The company is closely monitoring regulatory developments related to sustainable finance and ESG risk management to provide feedback through industry groups[95] - The company is conducting thematic stress tests and portfolio reviews to assess the impact of extreme but plausible events on its investments[93] Future Outlook - The outlook for 2023 has been raised, with expected tangible shareholder return reaching 10%[3] - The company aims for tangible shareholder equity returns of 10% in 2023 and over 11% in 2024, with continued growth expected thereafter[18] - The company plans to maintain flexibility within the common equity tier 1 capital ratio target range of 13-14%[36] - The company is positioned as a leading offshore RMB business bank and a major USD settlement bank in New York, capitalizing on strong ties with active markets[17]
渣打集团(02888) - 2023 - 中期业绩