HANG SENG BANK(00011)2025-02-19 04:01Financial Performance - For the fiscal year 2024, the operating profit increased by 8% to HKD 21.558 billion, compared to HKD 19.946 billion in 2023[3]. - Non-interest income surged by 26% to HKD 10.753 billion, up from HKD 8.527 billion in 2023[6]. - The bank's net interest income decreased by 5% to HKD 30.784 billion, down from HKD 32.295 billion in 2023, with a net interest margin narrowing by 10 basis points to 2.20%[6]. - The bank's earnings per share increased by 4% to HKD 9.33, compared to HKD 8.97 in 2023[6]. - The total dividend for 2024 is HKD 6.80 per share, reflecting a year-on-year increase of 4.6%[6]. - Operating profit rose by 8% year-on-year, with pre-tax profit increasing by over HKD 900 million[16]. - The group's net operating income increased by 2% to HKD 41.537 billion, while non-interest income rose by 26%, offset by a 5% decrease in net interest income[28]. - The pre-tax profit for the year ending December 31, 2024, is reported at HKD 21,014 million, an increase from HKD 20,105 million in 2023, reflecting a growth of 4.5%[90]. - The total operating income before expected credit loss for 2024 is HKD 41,537 million, up from HKD 40,822 million in 2023, marking a growth of 1.7%[92]. Customer Base and Growth - The number of newly acquired affluent customers rose by 75%, contributing to an overall 15% increase in the affluent customer base[3]. - The bank's affluent customer base grew by 15%, with new affluent customers increasing by 75% year-on-year[16]. - The number of new accounts opened by mainland clients increased by 81% year-on-year, following the launch of a fast account opening service[55]. - Active users of mobile wealth management and online banking increased by 24% and 6% year-on-year, respectively[61]. Risk Management and Credit Quality - The bank has actively reduced the risk in its loan portfolio to maintain growth momentum and create significant value for stakeholders[3]. - The bank's non-performing loan ratio was 6.12% as of the end of 2024, with 90% of unsecured loans rated as investment grade[18][26]. - Total impaired loans increased from HKD 24.7 billion at the end of 2023 to HKD 51 billion by the end of 2024, reflecting downgrades in ratings of certain impaired corporate loans[37]. - Expected credit loss provisions decreased by HKD 1.475 billion, or 24%, to HKD 4.773 billion, mainly due to reduced provisions for wholesale loan customers[36]. - The expected credit loss ratio remains stable at 1.56% for both 2024 and 2023, indicating consistent credit quality management[96]. Capital and Liquidity - The common equity tier 1 capital ratio stood at 17.7% as of December 31, 2024, compared to 18.1% in 2023[6]. - The bank's liquidity coverage ratio stood at 301.0% as of December 31, 2024[25]. - The liquidity coverage ratio as of December 31, 2024, was 301.0%, compared to 260.7% at the end of 2023[47]. - The total capital ratio decreased to 20.8% in 2024 from 21.4% in 2023, reflecting a reduction of approximately 0.9 percentage points after accounting for the proposed fourth interim dividend for 2024[116]. - The leverage ratio improved to 8.0% in 2024 from 8.5% in 2023[118]. Expenses and Efficiency - The cost-to-income ratio was reported at 36.6%, slightly up from 35.8% in 2023[6]. - Operating expenses grew by HKD 569 million, or 4%, to HKD 15.193 billion, driven by increases in intangible asset amortization and IT-related expenses[37]. - Employee compensation and benefits increased to HKD 6,802 million in 2024 from HKD 6,492 million in 2023, representing a growth of 4.78%[82]. - Total operating expenses rose to HKD 15,193 million in 2024, up from HKD 14,624 million in 2023, marking an increase of 3.90%[82]. Investments and Financial Instruments - Financial investments rose significantly to HKD 541,155 million in 2024, compared to HKD 405,792 million in 2023, marking an increase of approximately 33.3%[68]. - The bank's financial instruments measured at fair value through profit or loss increased to HKD 164,557 million in 2024 from HKD 156,872 million in 2023, indicating a growth of 4.3%[95]. - Total income from financial instruments measured at fair value through profit or loss decreased to HKD 7,681 million in 2024, down 32.5% from HKD 11,330 million in 2023[78]. Shareholder Returns and Dividends - The bank declared a fourth interim dividend of HKD 3.20 per share, totaling HKD 6.80 per share for 2024, a 4.6% increase year-on-year[22]. - The bank declared dividends totaling HKD 12,923 million for the year, which includes the fourth interim dividend for 2023 and the first three interim dividends for 2024[70]. - The total dividend distribution for 2024 was HKD 6.80 per share, totaling HKD 12,828 million, compared to HKD 6.50 per share and HKD 12,427 million in 2023, representing an increase of 3.22%[86]. Corporate Governance and Compliance - The bank has fully complied with the corporate governance principles and codes as per the Stock Exchange's requirements for the fiscal year 2024[134]. - The bank emphasizes the importance of corporate governance and aims to enhance reporting efficiency and quality[134]. - The bank has established a "Regulatory Disclosure" section on its website to comply with banking industry disclosure regulations[138].