恒生银行(00011) - 2019 - 年度财报

Financial Performance - The profit attributable to shareholders increased by 3% to HKD 24.84 billion, with earnings per share rising by 2% to HKD 12.77[27]. - The average return on ordinary shareholders' equity was 15.2%, down from 16.0% in 2018[27]. - The average return on total assets was 1.5%, compared to 1.6% in the previous year[27]. - The bank's net operating income before expected credit loss changes increased by 6% to HKD 43.514 billion in 2019, while operating profit rose by 2% to HKD 28.610 billion[38]. - The bank's net interest income increased by 7% to HKD 32.255 billion, driven by a 7% rise in average earning assets and improved deposit spreads[38]. - Non-interest income grew by 1% to HKD 11.259 billion, supported by new and optimized retirement and medical protection products[38]. - Total operating income for the year was HKD 63.341 billion, up from HKD 55.432 billion in 2018[88]. - Operating profit increased by 2% to HKD 28.610 billion, with profit attributable to shareholders rising by 3% to HKD 24.840 billion[89]. Asset and Equity Growth - The total assets as of December 31, 2019, amounted to HKD 1,676.99 billion, an increase from HKD 1,571.30 billion in 2018[9]. - The bank's total equity reached HKD 178.81 billion, up from HKD 162.08 billion in 2018[9]. - Shareholders' equity increased by HKD 17 billion, or 10%, to HKD 179 billion, with retained earnings rising by HKD 10 billion, or 8%[150]. - The bank's average interest-earning assets for the bank were HKD 1,422.968 billion, compared to HKD 1,328.533 billion in 2018[97]. Customer Deposits and Loans - Customer deposits increased by 5% year-on-year, reaching HKD 1,249.8 billion[60]. - Total customer loans grew by 8%, amounting to HKD 946.4 billion[60]. - Customer deposits increased by HKD 59 billion, or 5%, to HKD 1,250 billion, with a loan-to-deposit ratio of 75.4% as of December 31, 2019[146]. - The bank's mortgage loan balance grew by 11% year-on-year, with a market share of 16% in new mortgage business, ranking among the top three in Hong Kong[70]. Cost and Efficiency - The cost-to-income ratio for 2019 was 30.0%, compared to 29.5% in 2018[11]. - The bank's cost-to-income ratio was 30.0%, remaining one of the lowest in the industry despite a 7% increase in operating expenses to HKD 13.057 billion[39]. - Operating expenses rose by HKD 8.89 billion, or 7%, to HKD 130.57 billion, reflecting continued investment in employees, technology, and operations[115]. Risk Management - The bank's risk management approach emphasizes prudent risk levels to ensure sustainable growth while protecting stakeholders[154]. - The bank employs a comprehensive risk management framework to monitor and manage significant financial and non-financial risks[159]. - The risk management culture is reinforced by the bank's values, ensuring employee behavior aligns with risk tolerance levels[160]. - The board is ultimately responsible for effective risk management and approving the group's risk tolerance levels[165]. - The bank conducts operational risk self-assessments for new services and products before their launch[166]. - The group has implemented a comprehensive stress testing program to assess capital strength and resilience against external shocks, supported by a dedicated team and infrastructure[177]. Economic Environment - Hong Kong's economy contracted by 1.2% in 2019, following a growth of 2.9% in 2018, with expectations of moderate contraction in 2020 due to external and local factors[28]. - Mainland China's GDP growth slowed to 6.1% in 2019 from 6.7% in 2018, with further slowdown anticipated in 2020 due to trade activity decline and the impact of the coronavirus outbreak[29]. - The economic outlook for Hong Kong anticipates a technical recession in the second half of 2019, with GDP expected to record its first annual negative growth since 2009[183]. Digital Innovation and Customer Service - The bank launched over 100 digital innovations and service enhancements in 2019, including mobile cash withdrawal services at ATMs[33]. - The bank is focusing on digital innovation to enhance customer service and operational efficiency[42]. - The company continues to enhance digital services and physical service points to improve customer experience and satisfaction[133]. COVID-19 Response - The bank has implemented various relief measures for customers facing difficulties due to the COVID-19 pandemic[44]. - The group is actively monitoring the impact of the COVID-19 pandemic on economic conditions, which may affect expected credit loss calculations[182]. - The bank has implemented a continuous operation plan to ensure employee safety and well-being while maintaining the ability to support customers and sustain business operations[183].