Core Insights - The Hong Kong banking sector is demonstrating robust growth and operational resilience in 2024 despite ongoing global economic challenges [1] - Total assets of licensed banks in Hong Kong grew by 4.5% year-on-year, reaching HKD 24 trillion, while operating profit before impairment increased by 7.8% to HKD 318 billion [1] - The banking industry is focusing on cost control and operational efficiency in response to weak loan demand and narrowing net interest margins [1] Group 1 - The total loans and advances decreased by 2.3%, while total customer deposits increased by 4.1% [1] - The non-performing loan ratio rose from 1.65% to 2.15%, primarily due to challenges in the commercial real estate and overall property sectors [1] - Banks are actively implementing risk management measures, including diversifying investment portfolios and utilizing digital tools for early risk warning capabilities [1] Group 2 - The adoption of artificial intelligence (AI) technology, particularly Agentic AI, is accelerating among Hong Kong banks to enhance operational efficiency, risk management, and compliance [1] - The development of Agentic AI is progressing faster than expected, with banks generally responding positively to potential risks while accelerating adoption [2] - A strategic and data-driven approach to implementing Agentic AI could position Hong Kong banks favorably in an increasingly competitive market [2]