大新金融(00440) - 2022 - 年度财报

Financial Performance - Shareholders' funds decreased to HK$29,520 million in 2022 from HK$30,192 million in 2021[11] - Total deposits increased to HK$202,804 million in 2022 from HK$201,512 million in 2021[11] - Advances to customers (excluding trade bills) decreased to HK$136,530 million in 2022 from HK$144,313 million in 2021[11] - Profit attributable to shareholders decreased to HK$1,171 million in 2022 from HK$1,308 million in 2021[11] - Total dividend distribution increased to HK$364 million in 2022 from HK$339 million in 2021[11] - Basic earnings per share decreased to HK$3.67 in 2022 from HK$4.09 in 2021[11] - Dividends per share increased to HK$1.14 in 2022 from HK$1.06 in 2021[11] - Total assets increased to HK$259,847 million in 2022, up from HK$250,312 million in 2021[12] - Basic earnings per share for 2022 was HK$5.72, compared to HK$4.09 in 2021[12] - Dividends per share (excluding special dividend) rose to HK$3.62 in 2022 from HK$1.06 in 2021[12] - Profit attributable to shareholders decreased by 10% to HK$1,171 million for the year ended 31 December 2022, primarily due to a gain on the termination of the previous insurance distribution agreement and a larger-than-usual impairment charge on the investment in Bank of Chongqing[41][42] - Excluding the two large items, profit attributable to shareholders would have been HK$1,235 million, a decrease of 6%[41][42] - Net interest income grew by 11% due to improved net interest margin and higher balances of interest-earning assets, despite subdued demand in core loan markets[44] - Operating profit before impairment charges of the banking business increased by 61%, largely driven by the gain on the termination of the previous insurance distribution agreement[44] - Excluding the gain on the termination of the insurance distribution agreement, operating profit before impairment increased by 2%, while non-interest income decreased by 27%[44] - Gross premiums written for the insurance business increased by 12%, despite challenging market conditions in Hong Kong and Macau[43] - Credit impairment losses increased by 115% to HK$803 million, primarily due to deteriorating credit quality in the corporate banking sector, especially in mainland China's real estate industry[45] - Retail banking loan balances remained stable, with average loan volume increasing by 4$803 million, primarily due to exposures in Mainland China's real estate sector[48] - The company's share of net profit from its associate, Bank of Chongqing, decreased to HK$657 million, with a total impairment charge of HK$1,683 million for the year[49][52] - Gross premium income for non-life insurance business increased by 12%, despite poor economic conditions in Hong Kong and Macau[50][53] - The total return of the combined insurance and group investment portfolios was negative 10.6% for the year[50][53] - Dah Sing Bank's Common Equity Tier 1 ratio improved to 15.2%, up 1% from 2021, and its consolidated capital adequacy ratio reached 19.3%[51][54] - Dah Sing Bank maintained a Liquidity Maintenance Ratio of 50.4%, well above the minimum requirement of 25%[51][54] - Operating profit before credit impairment losses increased by 55.0% to HK$3,829.5 million in 2022 compared to 2021[70] - Profit attributable to shareholders decreased by 10.5$1,171.4 million in 2022[70] - Total assets grew by 1.3% to HK$259,847 million in 2022[70] - Net interest margin improved to 1.85$6,826.3 million in 2022[74] - Customer loans decreased by 5.4% to HK$136,530 million in 2022[74] - Total deposits increased by 6.4$204,021 million in 2022[74] - Cost to income ratio improved to 44.2% in 2022 from 56.1% in 2021[74] - Profit attributable to shareholders decreased by 2.9%, while operating income increased by 26.8% driven by higher net interest income and asset yields[75] - Net fee and commission income surged by 87.8% due to the one-off recognition of unamortised fee from the termination of the HKDA with Tahoe Life[75] - Credit impairment charges increased by 115.1% year-on-year, primarily due to higher provisions for credit losses in the China property developer sector[76] - DSBG's return on shareholders' funds decreased from 5.7% in 2021 to 5.4% in 2022, while the cost-to-income ratio improved from 56.1% to 44.2%[76] - The consolidated Common Equity Tier 1 ratio strengthened to 15.2% in 2022, up from 14.2% in 2021, with an overall capital adequacy ratio of 19.3%[76] - Personal Banking deposits grew mildly in 2022, with VIP Banking customer base achieving double-digit growth[78][82] - Outstanding personal loans increased by 3% compared to the end of 2021, supported by digital platform growth and improved credit approval processes[81] - Digital transaction volume surged by 46% year-on-year, driven by the launch of enhanced e-banking platforms and video banking services[83] - The company completed the digitization of branch network customer processes, achieving a "paperless" banking workflow by the end of 2022[83] - The bank maintained a network of 41 retail branches in Hong Kong, including 27 VIP Banking centers and 11 SME centers as of December 2022[83] - Digital transactions surged by 46% year-on-year by the end of 2022[84] - The company recognized a one-time fee and commission income of HK$1,394 million due to the termination of the HKDA with Tahoe Life, significantly boosting Personal Banking's operating income and net profit[86][88] - Corporate Banking reported a net decrease in loan balances, with shortfalls mainly in trade finance and term loans, partially offset by an increase in syndicated loans[90] - Treasury and Global Markets division's attributable profit increased by 19$598 million, with net interest income growing by 23% to HK$918 million and net interest margin rising from 0.94$14.3 million to HK$100.1 million, with credit impairment charges rising to HK$36.4 million from HK$15.5 million due to a higher credit investment portfolio[96][98] - The average Liquidity Maintenance Ratio for the Treasury improved to 50$657 million in 2022, but a total impairment charge of HK$1,683 million was recognized due to a lower Value in Use assessment[116][117] - The Group's general insurance business recorded a net profit of HK$14 million in 2022, down from HK$65 million in 2021, with net insurance premium and other income decreasing to HK$484 million from HK$500 million[120] - The company's general insurance business recorded a 12$393 million in 2022, largely recognized as other comprehensive loss, correlating with market performance[121] - The net asset value of the general insurance business dropped by 9% in 2022, following steady growth in the prior two years, primarily due to negative investment returns[124][125] - DSI (Dah Sing Insurance) achieved a 25% growth in topline revenue in 2022, driven by improved operational efficiency and digitalization efforts[128] - DSI maintained a strong solvency ratio of 1,549% in 2022, up from 1,327% in 2021, supporting continued business growth in Hong Kong and Macau[124][125] - MIC (Macau Insurance) reported a solvency ratio of 1,167% in 2022, slightly down from 1,205% in 2021, but remained robust[124] - The company's general insurance business reduced operating expenses by 3% in 2022, despite higher staffing and marketing costs, due to investments in IT platforms and systems[121] - DSI's A.M. Best Financial Strength Rating of "A-" (Excellent) and Long-Term Issuer Credit Rating of "A-" were reaffirmed in 2022, with a stable outlook[130] - Macau general insurance and pension fund operations saw a contraction in premium turnovers due to economic recession and city lockdowns, impacting both operating and investment performance in 2022[131][132] - Gross premiums through agency channels grew by 18% year-on-year despite the recessionary environment[133] - The combined ratio for Macau insurance remained healthy at 91% due to disciplined underwriting and proactive claims management[133] - Macau insurance's solvency ratio was reaffirmed with an "A-" (Excellent) Financial Strength Rating and Long-Term Issuer Credit Rating by A.M. Best[134] - Pension management business saw a 7% contraction in Assets Under Management and a 17% shortfall in net profit due to weaker investment markets[134] - The Group implemented Expected Credit Loss (ECL) models to assess impairment provisions, considering macroeconomic factors and forward-looking elements[138] - The Group strengthened internal controls by establishing dedicated control officers in major divisions and conducting end-to-end process reviews[140] - An internal training program was launched in 2022 to enhance staff awareness on climate risk and green and sustainable banking initiatives[141] - The Group's banking subsidiaries maintained a Common Equity Tier 1 capital base of HK$26,268 million in 2022, up from HK$24,354 million in 2021[142] - The Common Equity Tier 1 capital adequacy ratio increased to 15.2% in 2022 from 14.2% in 2021[142] - The total capital base after deductions rose to HK$33,227 million in 2022, compared to HK$31,106 million in 2021[142] - The liquidity maintenance ratio averaged 50.4% in 2022, up from 46.9% in 2021[142] - The Group's total number of employees increased from 3,014 in 2021 to 3,047 by the end of 2022[149] - The Group launched its first 'Culture Week' in June 2022 to promote its 'Culture & Values'[147] - A culture survey was conducted in October 2022, with encouraging participation and responses[147] - The Group introduced an independent rating for non-financial performance in 2019, in addition to financial performance ratings[148] - The Group provided various support arrangements for employees during the COVID-19 pandemic, including flexible working hours and one-off anti-pandemic subsidies[150] - The Group's Employee Value Proposition (EVP) was rolled out in 2019, with the motto "NOT JUST A BANK, A HOME"[148] - The Board of Directors is responsible for setting and overseeing the objectives and strategies of the Group, approving annual budgets and business plans, and monitoring performance and execution of plans[158] - The Board ensures effective risk governance, internal control systems, and ESG-related strategy and risk management[158] - As of 31 December 2022, the Board comprised 9 Directors and 1 Alternate Director, including Executive Directors, Non-Executive Directors, and Independent Non-Executive Directors to ensure independence and objectivity in decision-making[159] - The Board has delegated day-to-day responsibilities to Management and certain matters to committees, while retaining oversight of key areas such as senior management appointments and major acquisitions or disposals[158] - The Company has applied and complied with the Corporate Governance Code under the Hong Kong Listing Rules, except for code provision F.2.2, as explained in the relevant section[155] - The company has 1 Non-Executive Director (NED) and 5 Independent Non-Executive Directors (INEDs), all of whom have confirmed their independence as required under Rule 3.13 of the Listing Rules[165] - The Chairman and Chief Executive roles are held separately by Mr. David Shou-Yeh Wong and Mr. Hon-Hing Wong (Derek Wong) respectively, ensuring a clear distinction between leadership and day-to-day management[164] - Board meetings are held at least 4 times each year at approximately quarterly intervals, with additional meetings as necessary[165] - The Chairman meets with INEDs annually without the presence of other Directors and management staff to facilitate open and frank discussions[170] - Directors may seek independent professional advice at the company's expense, and such requests will not be unreasonably denied[168] - The company maintains appropriate insurance cover for legal action against its Directors[168] - The governance framework and mechanisms are regularly reviewed to ensure effectiveness in maintaining a strong independent element on the Board[169] - INEDs are selected based on criteria including time commitment, cultural and educational background, professional experience, and qualifications[169] - Dissenting views of Directors on any matters discussed at Board/committees' meetings are properly recorded in the minutes[170] - The company has complied with Rule 3.10(1) and (2) and 3.10A, ensuring a sufficient number of INEDs with appropriate professional qualifications and experience[165] - The Board reviewed and discussed the Corporate Governance Report of 2021 and the Environmental, Social, and Governance (ESG) Report of 2021[171] - Management confirmed the effectiveness of the Group's risk management and internal control systems[171] - The Board reviewed amendments to the Corporate Governance Code and related action items[171] - The Board reviewed changes in the composition of the Board and Board Committees[171] - The Board reviewed the Group's progress in ESG development and strategy[171] - The Company adopted a Directors' Dealing Code, and all Directors confirmed compliance with the Model Code and the Directors' Dealing Code for the year ended 31 December 2022[177] - The Board conducted an annual review of the Board Governance Policy and Procedures, Shareholders Communication Policy, and updated the Board Diversity Policy[176