恒生银行(00011) - 2024 - 中期业绩

Financial Performance - Pre-tax profit increased by 3% year-on-year to HKD 11.307 billion, with a return on equity of 12.4%[3] - Operating profit increased by 5% to HKD 11.396 billion, reflecting strong business performance[3] - For the first half of 2024, the pre-tax profit increased by 24% compared to the second half of 2023, primarily due to a 65% reduction in expected credit loss changes and strong growth in non-interest income[14] - The profit attributable to shareholders for the period was HKD 9,888 million, up from HKD 9,822 million in the prior year, indicating a year-on-year increase of about 0.7%[37] - Basic and diluted earnings per share increased to HKD 5.04 from HKD 4.99, representing a growth of 1.0%[35] Income and Revenue - Net interest income grew by 2% to HKD 15.483 billion, with a net interest margin widening by 20 basis points to 2.29%[3] - Non-interest income rose by 4% year-on-year, contributing to overall revenue growth[2] - Non-interest income grew by 4% year-on-year, driven by a 20% increase in retail investment fund fees and a 16% increase in insurance services[7] - Operating income before expected credit loss changes increased by 2% year-on-year to HKD 20.43 billion, with non-interest income up by 4% due to increased retail investment fund and insurance business revenues[14] - Wealth management business revenue increased by HKD 58 million, or 2%, to HKD 3.177 billion, supported by strong growth in retail investment funds and life insurance income[16] Dividends and Shareholder Returns - Total shareholder capital return, including a HKD 3 billion share buyback plan, increased by 80% to HKD 7.6 billion[3] - The second interim dividend declared is HKD 1.20 per share, totaling HKD 2.40 per share for the first half of 2024, up 9% from the previous year[3] - The board declared an interim dividend of HKD 1.20 per share, totaling HKD 2.40 for the first half of 2024, a 9% increase from the previous year[10] - The board declared dividends totaling HKD 4,687 million for the first half of 2024, which includes HKD 2,282 million from the first interim dividend and HKD 2,835 million from the fourth interim dividend of 2023[39] Capital and Ratios - The common equity tier 1 capital ratio stands at 16.6%, down from 18.1% at the end of 2023[3] - The bank's capital ratios remain strong, with a Common Equity Tier 1 capital ratio of 16.6% and a total capital ratio of 19.7%[12] - Total Capital Ratio declined to 19.7% as of June 30, 2024, down from 21.4% as of December 31, 2023[68] - Leverage Ratio decreased to 8.1% as of June 30, 2024, from 8.5% as of December 31, 2023[70] Customer and Market Growth - The number of new affluent clients increased by 147% year-on-year, with new private banking accounts growing by 15% and new accounts from mainland clients rising by 166%[7] - Total customer deposits increased by 2%, mainly driven by growth in time deposits[11] - The affluent customer base grew by 14% year-on-year, with a 147% increase in newly acquired affluent customers[29] - Active foreign exchange trading customers increased by 15%, contributing to a 17% year-on-year growth in non-HKD deposits[29] Loans and Credit Quality - The bank's non-performing loan ratio increased to 5.32%, primarily due to the downgrade of the Hong Kong commercial real estate loan portfolio, but most loans are secured[12] - Total impaired loans increased from HKD 25 billion at the end of 2023 to HKD 46 billion by June 30, 2024, with the impaired loan ratio rising to 5.32%[18] - Customer loans (net of expected credit loss provisions) decreased by HKD 11 billion, or 1%, to HKD 850 billion, reflecting weak credit demand in a rising interest rate environment[22] - The expected credit loss for loans and other financial assets was HKD 1,500 million for the six months ending June 30, 2024, down from HKD 1,924 million in the previous year, indicating a reduction of 22%[45] Operating Expenses and Efficiency - The cost-to-income ratio is reported at 36.8%, compared to 35.9% in the previous year[3] - Operating expenses rose by HKD 3.67 billion, or 5%, totaling HKD 75.23 billion, driven by increased processing service fees and investments in digital capabilities[18] - Total operating expenses for the six months ending June 30, 2024, were HKD 7,523 million, an increase from HKD 7,156 million in the same period of 2023, resulting in a cost-to-income ratio of 36.8%, up from 35.9%[45] Strategic Initiatives - The bank continues to support SMEs with new initiatives and received recognition as the "Best Partner for SMEs" by the Hong Kong SME Association[5] - The bank launched a HKD 33 billion SME Power Up financing fund and an HKD 80 billion sustainable development financing fund to support business growth and green transformation[9] - The bank is expanding its global ETF business, launching new products and partnerships to strengthen Hong Kong's position as an ETF hub[5] Regulatory and Governance - The bank has fully complied with the corporate governance principles and codes as of June 30, 2024[84] - The board of directors includes independent non-executive directors and non-executive directors, ensuring diverse governance[85] - The bank has established a regulatory disclosure section on its website to comply with banking disclosure regulations[87] Forward-Looking Statements - The bank's forward-looking statements may involve significant assumptions and uncertainties, which could lead to actual results differing materially[88] - Important factors that may lead to significant differences between actual performance and the announcement are detailed in the 2023 annual report and the 2024 interim report[89]