恒生银行(00011) - 2024 - 年度财报

Financial Performance - The bank reported a net profit attributable to shareholders of HKD 18,379 million for 2024, an increase from HKD 17,848 million in 2023, representing a growth of 3%[10] - The bank's operating profit for 2024 was HKD 21,558 million, up from HKD 19,946 million in 2023, reflecting a growth of 8%[10] - The bank's earnings per share increased to HKD 9.33 in 2024 from HKD 8.97 in 2023, reflecting a growth of 4%[10] - Profit before tax rose by 5% year-on-year to HKD 21.014 billion, and earnings attributable to shareholders increased by 3% to HKD 18.379 billion[40] - The company's total revenue for 2024 was HKD 41.54 billion, up from HKD 40.82 billion in 2023[59] Asset and Capital Management - The bank's total assets increased to HKD 1,795,196 million in 2024 from HKD 1,692,094 million in 2023, marking a growth of approximately 6%[11] - The bank's common equity tier 1 capital ratio was 17.7% in 2024, slightly down from 18.1% in 2023, indicating a stable capital position[11] - Shareholders' equity grew by HKD 10 billion, or 1%, from HKD 168.1 billion in 2023 to HKD 169.5 billion in 2024[106] - The bank's financial investments increased from HKD 405.8 billion in 2023 to HKD 541.2 billion in 2024, a growth of 33.3%[98] Income Sources - Non-interest income increased by 26% year-on-year, reaching HKD 10.753 billion, improving its share of total operating income from 21% in 2023 to 26% in 2024[38] - Wealth management income grew by 22% year-on-year, contributing to the overall non-interest income growth[31] - The bank's life insurance-related income rose by 17% to HKD 3.119 billion, driven by increased insurance service income[39] - The bank's commercial banking net operating income decreased by 4% to HKD 10.226 billion, while non-interest income grew by 9%[50] Loan and Deposit Trends - The bank's net interest income decreased by 5% to HKD 30.784 billion due to weak loan demand and interest rate cuts expected in the second half of 2024[39] - Customer loans (net of expected credit loss provisions) decreased by HKD 41 billion, or 5%, to HKD 819 billion[97] - Customer deposits increased by HKD 86 billion, or 7%, from HKD 1,180.6 billion in 2023 to HKD 1,267.0 billion in 2024[103] - The loan-to-deposit ratio improved from 72.9% in 2023 to 64.7% in 2024, indicating a stronger liquidity position[104] Risk Management - The bank's risk management framework emphasizes a culture of risk awareness and accountability across all levels of the organization[112] - The risk management tools include processes for identifying, assessing, monitoring, managing, and reporting risks to maintain them within acceptable levels[121] - The group conducts extensive stress testing to assess the impact of severe adverse events on financial stability and to enhance regulatory confidence[126] - The company has identified geopolitical and macroeconomic risks as primary emerging risks for 2024, particularly due to uncertainties surrounding the upcoming elections and changes in U.S. domestic and foreign policies[132] Credit Risk and Expected Credit Loss - The expected credit loss changes decreased by HKD 1.475 billion, or 24%, to HKD 4.773 billion, mainly due to reduced provisions for wholesale loan customers[73] - The total amount of loans classified under Stage 3, which indicates objective evidence of impairment, is 51,009 million, with an expected credit loss provision of 9,764 million, leading to a coverage ratio of 38.03%[189] - The expected credit loss coverage ratios for Stage 1, Stage 2, and Stage 3 loans are 0.06%, 2.84%, and 19.14% respectively, indicating a significant increase in credit risk as loans progress through the stages[189] - The company has measures in place for loans in financial difficulty, including modifications to repayment terms, which may classify loans as impaired[177] Strategic Initiatives - The bank plans to strengthen its cross-border business to better meet the banking service needs of retail and corporate clients in response to new economic policies in Hong Kong and mainland China[23] - The bank launched a HKD 33 billion SME Power Up financing fund to support local SMEs and an HKD 80 billion sustainable development financing fund for green transformation projects[36] - The company is focused on sustainable financing solutions to assist clients in transitioning to low-carbon operations[55] Customer Engagement and Digital Transformation - The bank serves nearly 4 million customers, leveraging its award-winning mobile banking application and extensive physical network of over 250 service points in Hong Kong[7] - Active users of mobile wealth management and online banking grew by 24% and 6% year-on-year, respectively[54] - The number of new retail accounts opened by mainland customers surged by 81% year-on-year[32] Market and Economic Outlook - Economic growth is expected to continue in major markets like the U.S. and U.K. in the second half of 2024, driven by expansionary fiscal and monetary policies[138] - The outlook for 2025 remains uncertain due to potential significant changes in U.S. economic and foreign policies, which could impact global economic growth and inflation forecasts[139] - The real estate market in mainland China and Hong Kong remains sluggish despite multiple government policies aimed at supporting recovery, with no significant signs of revival observed[140]