Core Viewpoint - Dah Sing Bank Group reported a significant increase in credit impairment losses, which raised concerns among investors despite a year-on-year increase in net profit [1][2]. Financial Performance - The company reported a net profit attributable to shareholders of HKD 2.06 billion, representing a year-on-year growth of 10.8% [1]. - Net interest income for 2024 was HKD 5.288 billion, up 9.8% year-on-year [2]. - Non-interest income, specifically net service fees and commission income, surged by 53.3% to HKD 1.328 billion [2]. - Operating profit before impairment losses increased by 31%, driven by a 50% rise in non-interest income and stable operating costs [2]. Credit Impairment Losses - Credit impairment losses skyrocketed by 145% to HKD 1.791 billion, primarily attributed to customer loans and advances [1][2]. - The bank indicated that the property-related loan market in Hong Kong and mainland China faced ongoing challenges, contributing to the increase in impairment losses [2]. - The bank's property investment loans were approximately HKD 23 billion, down 3% year-on-year, while property development loans decreased by 7% to about HKD 6.4 billion [2]. Market Conditions - The demand for loans in the market has stagnated, leading to weak loan growth [2]. - The bank's management noted that the non-performing loan ratio for local commercial real estate remains at a controllable level, but the commercial real estate market is developing slowly, with expectations of continued declines in loan amounts this year [2].