DAH SING-大新金融(00440) - 2023 - 年度财报

Financial Performance - Shareholders' funds increased to HK $32,682 million in 2023, up from HK$ 29,601 million in 2022, representing a growth of 6.99%[4] - Profit attributable to shareholders for 2023 was HK $1,592 million, a 30.1% increase from HK$ 1,224 million in 2022[4] - Basic earnings per share for 2023 was HK $5.28, up from HK$ 4.99 in 2022, reflecting a growth of 5.8%[5] - Total dividend distribution for 2023 reached HK $637 million, significantly higher than HK$ 364 million in 2022, indicating a growth of 75%[4] - The group's profit for the year increased by 30% to HK $1,592 million for the year ended December 31, 2023[46] - Operating profit before credit impairment losses decreased by 28% to HK$ 2,993.4 million, while excluding the one-off gain from 2022, it increased by 14%[50] - The Group's operating income decreased by 13.3% to HK $5,916.1 million, primarily due to one-off expenses related to the termination of a distribution agreement[64] - Operating profit after credit impairment losses was HK$ 2,261.9 million, a decrease of 26.5% compared to the previous year[56] - The cost-to-income ratio increased to 52.1% from 44.4%[56] - The Group's profit attributable to shareholders increased by 30.0% to HK $1,592 million in 2023[63] Asset and Liability Management - Total assets grew to HK$ 269,789 million in 2023, up from HK $259,159 million in 2022, representing a growth of 4.0%[6] - The bank's total liabilities, including subordinated notes, increased to HK$ 228,790 million in 2023 from HK $221,924 million in 2022, a rise of 3.9%[4] - The total assets increased by 4.1% to HK$ 269,789 million, while total liabilities rose by 3.1% to HK $228,790 million[59] - The consolidated Common Equity Tier 1 ratio increased to 16.2% in 2023, up from 15.2% at the end of 2022[70] - The liquidity maintenance ratio averaged 64.0% in 2023, significantly higher than the previous year's 50.4%[123] Customer Deposits and Advances - Total deposits rose to HK$ 208,963 million in 2023, compared to HK $202,804 million in 2022, marking an increase of 3.56%[4] - The number of customer deposits increased, with deposits from customers reaching HK$ 206,535 million in 2023, up from HK $198,575 million in 2022, a growth of 4.8%[4] - Advances to customers (excluding trade bills) amounted to HK$ 143,049 million in 2023, compared to HK $136,530 million in 2022, an increase of 4.4%[4] - Total credit card spending increased by 11% year-on-year in 2023, with credit card balances rising by 4.6% compared to the end of 2022[76] Strategic Initiatives and Partnerships - The group entered into a 15-year exclusive bancassurance partnership with Sun Life Group, effective from July 2023[45] - The establishment of the Shenzhen Branch aligns with the Greater Bay Area strategy, enhancing cross-border business opportunities[49] - Dah Sing Bank launched a 15-year exclusive bancassurance partnership with Sun Life Hong Kong Limited in July 2023, enhancing its wealth management offerings with a diverse range of life and medical protection products[75][80] - The company is focused on expanding its corporate banking services in Greater China and South Korea, leveraging the expertise of its directors[29] Risk Management and Compliance - The Company emphasizes the importance of risk management and quality assurance in its operations[23] - The Group adopted cautious credit management and investment strategies throughout the year in response to challenging market conditions and weak credit demand[121] - The Group established a fraud risk management framework to enhance fraud awareness and prevention amid changing market conditions[128] - The Group Compliance Committee is responsible for overseeing the development and maintenance of compliance systems to ensure adherence to statutory requirements and regulatory guidelines[198] Corporate Governance - The Company is focused on maintaining high standards of corporate governance and compliance through its independent directors[20][22] - The Board of Directors consists of 9 directors and 1 alternate director as of December 31, 2023, including executive directors and independent non-executive directors[144] - The Company has complied with all code provisions of the Corporate Governance Code, except for code provision F.2.2, as explained in the report[139] - The Board has delegated day-to-day management responsibilities to the Management while retaining oversight of key governance functions[143] - The Company has established a Board Governance Policy and Procedures, subject to annual review for effectiveness[139] Leadership and Management - Dah Sing Bank has a strong leadership team with extensive experience in banking and finance, enhancing its operational capabilities[34][35][38] - The leadership team is committed to fostering a culture of governance and ethical standards within the organization, drawing from their extensive backgrounds in financial services[24][25] - The Group's commitment to promoting its "Culture & Values" was evident through initiatives like the second "Culture Week" and the "Dah Sing Star Awards" for employee recognition[133] - Employee turnover improved significantly compared to 2022, despite intense competition for talent in the banking industry[135] Digital Transformation - The company continues to invest in digital solutions and upgrade its digital banking platform, DS-Direct, to enhance customer experience and service quality[87] - Digital transaction volume grew by 48% during the year[74] - The Group aims to enhance its internal control systems and procedures continuously[200] Insurance and Investment Operations - Insurance income for the group increased to HK$ 967 million in 2023 from HK $852 million in 2022[100] - The group's general insurance business achieved a pre-tax profit of HK$ 148 million in 2023, compared to HK $83 million in 2022[100] - The overall investment return for the general business was HK$ 558 million, aligning closely with market performance[109] - The pension management business reported a net profit growth of 80.6% year-on-year, attributed to higher interest income and a 9.6% increase in Pension Assets Under Management[119]