Dah Sing Financial Holdings Limited · HKEX:440
Dah Sing Financial — FY2022 Earnings Presentation
22 slides from Dah Sing Financial's earnings presentation, Mar 31, 2023
Slide 1: Dah Sing Financial Group 2022 Annual Results
Dah Sing Financial Group 2022 Annual Results 31 March 2023
Slide 2: Performance highlights
Performance highlights • Increase in net interest income with improved net interest margin • Underlying profit attributable to shareholders relatively stable year on year. • Reported profit attributable to shareholders slightly down after excluding the gain on the termination of the former bancassur
Slide 3: Financial Highlights
Financial Highlights GD itcneo Ca DAH SING FINANCIALGROUP
Slide 4: Dah Sing Banking Group (2356)
Dah Sing Banking Group (2356) HK$’ million 2022 2021 Change Net interest income 4,383 3,944 +11% Net fee and commission income 2,249 1,197 +88% Net trading income and other income 194 243 -20% Total operating income 6,826 5,384 +27% Operating expenses (3,016) (3,021) - Credit impairment losses (803)
Slide 5: Dah Sing Financial Holdings (0440)
Dah Sing Financial Holdings (0440) HK$’ million 2022 2021 Change Net interest income 4,431 3,954 +12% Net fee and commission income 2,236 1,186 +89% Net trading income, net insurance premium and other operating income net of insurance claims and expenses 328 536 -39% Total operating income net of in
Slide 6: Dah Sing Banking Group
Dah Sing Banking Group GD itcneo Ca DAH SING FINANCIALGROUP
Slide 7: Key return indicators
Key return indicators 8% 6% 5.7% 5.4% 4% 2% 0.7% 0.6% 0% 2021 2022 Return on average total assets (annualised) Return on average shareholders' funds (annualised) 7
Slide 8: Capital adequacy and liquidity
Capital adequacy and liquidity Capital adequacy ratio Liquidity maintenance ratio 20% 19.3% 50% 18.1% 18.0% 3.4% 3.4% 3.4% 40% 15% 0.7% 0.5% 0.5% 30% 50.4% 46.9% 45.3% 10% 14.2% 15.2% 20% 14.1% 5% 10% 0% 0% 31 Dec 21 30 Jun 22 31 Dec 22 31 Dec 21 30 Jun 22 31 Dec 22 CET1 Additional T1 T2 8
Slide 9: Gross advances to customers and trade bills
Gross advances to customers and trade bills 160,000 Change relative to 148.6 bn 2021 year-end : 150,000 141.1 bn 140.2 bn -5.6% 140,000 Loans for use outside HK 130,000 25% 120,000 26% 25% 110,000 Trade finance and 8% trade bills 100,000 6% 7% HK$ million 90,000 11% 11% 11% 80,000 Credit card advanc
Slide 10: Net interest margin
Net interest margin 2.00% 1.97% 1.90% 1.85% 1.80% 1.72% 1.74% 1.70% 1.60% 1.50% 1.40% 1.30% 1.20% 2021 average 1H22 2H22 2022 average 10
Slide 11: Income from core businesses
Income from core businesses 4,500 4,199 69 2% 4,000 Net trading income 3,500 and other 1,767 42% operating income 3,000 2,721 Net fee and 2,663 2,627 commission 116 4% HK$ million 2,500 127 5% 125 5% income 642 24% 555 21% 482 18% Net interest 2,000 income 1,500 1,963 72% 1,981 74% 2,020 77% 2,363 5
Slide 12: Credit quality
Credit quality 600 498 500 400 305 HK$’m 300 256 Credit impairment 200 117 losses 100 0 1H21 2H21 1H22 2H22 30 Jun 21 31 Dec 21 30 Jun 22 31 Dec 22 0.0% Overdue and 0.5% rescheduled loans ratio 1.0% 0.91% 0.96% 0.81% Impaired loan 0.97% ratio 1.5% 1.30% 1.41% 1.61% 2.0% 1.86% 12
Slide 13: Corporate banking
Corporate banking • Net interest income only decreased slightly with better NIM, despite contraction in loan volume • Lower profitability due mainly to higher impairment charges • Weak loan demand with shortfalls mainly in trade finance and term loans which were partly offset by an increase in syndi
Slide 14: Personal banking
Personal banking • Moderate increase in net interest income due to higher average loan balance and improved net interest margin • Underlying profitability, excluding gain on termination of the former bancassurance distribution agreement down by 31% • Steady market share in personal loans and meaning
Slide 15: Treasury & Global Markets
Treasury & Global Markets • Higher segmental profit due mainly to increase in net interest income • Customer business remained robust, particularly through our retail banking network • Conservative liquidity management - average Liquidity Maintenance Ratio at level in excess of 45%, well above statu
Slide 16: Overseas banking
Overseas banking Macau: • Remained profitable despite the very difficult operating conditions in Macau • Slight contraction in loan balance due to weak domestic demand and intense competition PRC: • DSB (China): Performance affected by soft credit demand and higher loan impairment charge • BOCQ’s pr
Slide 17: Dah Sing Financial Group
Dah Sing Financial Group GD itcneo Ca DAH SING FINANCIALGROUP
Slide 18: General insurance - Underwriting
General insurance - Underwriting • Moderate increase in gross premiums written despite difficult operating conditions • Modest decrease in net premium earned due mainly to more selective and cautious in underwriting • Stable combined ratio given effective cost management • Respectable increase in fl
Slide 19: General insurance and investments - Combined results
General insurance and investments - Combined results • Robust solvency in both our Hong Kong and Macau insurance subsidiaries providing capacity to generate premiums and investment income over time • Lower overall profit due mainly to reduced contribution from investments • The results of our insura
Slide 20: Conclusions
Conclusions GD itcneo Ca DAH SING FINANCIALGROUP 20
Slide 21: Conclusions
Conclusions • Our core businesses remained resilient and delivered stable performance despite a difficult operating environment • Higher net interest income with respectable improvement in net interest margin • Lower profit attributable to shareholders overall, with higher but manageable credit cost
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