Boc Hong Kong (holdings) Limited · HKEX:2388
Boc Hong Kong (holdings) — FY2024 Earnings Presentation
36 slides from Boc Hong Kong (holdings)'s earnings presentation, Mar 26, 2025
Slide 1: 2024 Annual Results
2024 Annual Results March 26, 2025
Slide 2: Disclaimer
Disclaimer This presentation and subsequent discussions may contain forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forward-looking terminology such as believe, expect, anticipate, estimate, plan, project, target, may or will, o
Slide 3: Agenda
Agenda Strategy Review Financial & Outlook Business Results
Slide 4: Strategy Review
oP SR Be ree (18 AR) ABR 2S BOC HONG KONG (HOLDINGS) LIMITED Strategy Review
Slide 5: Solid Growth in Operating Results and Shareholder Returns
Solid Growth in Operating Results and Shareholder Returns Profit Attributable to ROE Equity Holders HK$38.2bn 11.61% +16.8% +1.01ppt Full Year DPS Dividend Payout Ratio HK$1.989 55.0% +19.0% +1.0ppt 5
Slide 6: Enhancing Service Quality and Efficiency while Deepening Local Market Development
Enhancing Service Quality and Efficiency while Deepening Local Market Development Personal Banking Corporate Banking Financial Markets #1 in number of new residential mortgage #1 lead arranger for HK/Macao syndicated loans for Cemented status as HKD and RMB market-maker loans for 6 consecutive years
Slide 7: Consolidating GBA Business Advantages through Financial Collaboration
Consolidating GBA Business Advantages through Financial Collaboration Strengthening our Advantages in Catering to New MMA Scheme Businesses Consumption Habits Remained at the forefront in Stock Connect, Bond Connect, Wealth Number of GBA Account Opening customers increased by 16% Management Connect
Slide 8: Achieving Effective Regional Synergies through the One Branch One Policy Strategy in Southeast Asia
Achieving Effective Regional Synergies through the "One Branch One Policy" Strategy in Southeast Asia Achieved 13% increase in SEA entities’ corporate customer base by focusing on Belt and Road Cooperation, Chinese enterprises’ "Going Global" efforts and regional large corporates Optimised the regio
Slide 9: Strengthening RMB Business to Develop Offshore Markets
Strengthening RMB Business to Develop Offshore Markets +59% +26% RMB 713tn / +49% RMB Customer Loans Offshore RMB Public Bond Underwriting HK’s RMB Clearing Volume Accounted for over 70%* of the Global Offshore Total Cementing Business Advantages Leading Market Innovations Extended HK’s RMB clearing
Slide 10: Deepening Digital Transformation while Developing Hong Kong's Financial Infrastructure
Deepening Digital Transformation while Developing Hong Kong’s Financial Infrastructure Supported HKSAR Government’s severe weather market trading arrangements, and completed test for HKMA’s "IADS" programme Among 1st batch to participate in HKMA’s CBDC Project Ensemble Sandbox , achieving a proof-of
Slide 11: Creating a New Landscape for Green Finance and Nurturing New Sustainable Development Drivers
Creating a New Landscape for Green Finance and Nurturing New Sustainable Development Drivers Green & Sustainability Assisted Guangdong, Hainan and Shenzhen governments to issue ESG-themed bonds related Loans Satisfied demands for SME financing and corporate transformation in accordance with HKMA’s n
Slide 12: Financial & Business Results
Financial & Business Results
Slide 13: Steady Growth in Operating Results
Steady Growth in Operating Results HK$m (887) 1,251 (217) (1,641) 660 4,369 726 39,118 34,857 (+8.0%) (+7.9%) (+35.8%) (+5.3%) (-19.8%) (+17.1%) (+25.5%) (+12.2%) 2023 Net Net Fee & Other Operating Impairment Net Loss from Taxation 2024 Profit after Interest Commission Non- Expenses Allowances Dispo
Slide 14: Continued Growth in Deposits
Continued Growth in Deposits Deposit Growth Outpaced the Market Steady Increase in Market Share HK$m + 8.8% 2,724,221 2,503,841 Market Share 15.56% +0.33ppt 2023.12 2024.12 Time and Other Deposits Deposit Market Share Current and Saving Deposits (CASA)
Slide 15: Market Outperformance in Loan Business
Market Outperformance in Loan Business Customer Loans Performance Leading Market Share Total: 1,676,886 / -1.5% HK$m Loans for use in HK - 669,434 Corporates -2.1% Loans for use in HK - 583,967 Individuals +2.5% Market Share 16.35% Loans for use 378,635 +0.16ppt outside HK -5.7% Trade 44,850 Financi
Slide 16: Steady Increase in Net Interest Income
Steady Increase in Net Interest Income Quarterly Increase in Net Interest Margin Continued Growth in Net Interest Income 2024: 1.64% +1bp YoY HK$m 1.70% 1.61% 1.62% 1.63% 58,856 3,577,886 15,252 + 8.0% + 7.3% 14,787 54,487 3,334,799 14,520 14,297 1Q24 2Q24 3Q24 4Q24 50.4% 50.1% 49.0% 50.2% 2023 2024
Slide 17: Solid Growth in Fee Income
Solid Growth in Fee Income Net Fee Income Recovery Non-credit Related Fee Income Increased HK$m +7.9% 9,893 Securities brokerage +24.1% 9,167 Insurance +56.4% 6,838 7,054 Funds distribution +55.2% 3,995 2,936 2,413 2,236 Trust and custody services +15.1% Currency exchange +35.7% 2023 2024 Net Fee an
Slide 18: Sound Performance in Cost Efficiency
Sound Performance in Cost Efficiency Satisfying Core Requirements Consistently Outperformed the Market while Focusing on Key Initiatives in Cost-to-income Ratio HK$m 38.9% 38.3%* 745 131 (52) 63 17,494 16,607 25.4% 24.6% 2023 Staff Premises & Depre- Others 2024 2023 2024 Costs Equipment ciation Mark
Slide 19: Manageable Asset Quality Risk
Manageable Asset Quality Risk Better-than-market NPL Ratio Consistently Sufficient Risk Provisions HK$m 2,930 4,945 1.96% 2024 753 0.30% 1.57% 1,262 1.05% 1.05% 3,891 6,419 2023 2,475 0.38% 53 2023.12 2024.12 Net Charge of Impairment Allowances –Advances and Other Accounts Market Average BOCHK Credi
Slide 20: Constantly Enhancing Capital Management
Constantly Enhancing Capital Management Solid Capital Ratios Increasing Shareholder Return Total DPS for 2024 rose 19.0% to HK$1.989 with Total 22.00% the payout ratio rising 1ppt to 55.0% Capital Ratio +0.82ppt Adjust the dividend distribution to a quarterly payout, meeting diverse needs of investo
Slide 21: Solid Liquidity Position
Solid Liquidity Position Net Stable Funding Ratio Liquidity Coverage Ratio 141.83% 250.58% 223.79% 231.81% 201.06% 140.96% 140.29% 140.36% 1Q24 2Q24 3Q24 4Q24 1Q24 2Q24 3Q24 4Q24 NSFR (Quarter-end) LCR (Quarter-average)
Slide 22: Outlook
(Hh) PRES PH)AR Aa . BOC HONG KONG (HOLDINGS) LIMITED Outlook
Slide 23: 2025 Outlook
2025 Outlook Challenges Opportunities Global political and economic landscape Major national strategies and plans for deepening undergoing significant transformation comprehensive reform, plus ongoing positive macroeconomic trends in the Mainland Uncertainties remain in rate cut magnitudes Cross-bor
Slide 24: Priorities for 2025
Priorities for 2025 Actively devise a new 5-year plan to consolidate the Group’s globalisation advantages Build the Group’s private banking, asset management and custody business platforms, Establish AI governance mechanism and supporting Hong Kong’s development as an continue to improve technologic
Slide 25: Appendix
oP SR Be ree (18 AR) ABR 2S BOC HONG KONG (HOLDINGS) LIMITED,
Slide 26: Income Statement and Balance Sheet Summary
Income Statement and Balance Sheet Summary Income statement summary (HK$m) 2024 2023 Change Net interest income* 58,856 54,487 8.0% Net fee and commission income 9,893 9,167 7.9% Other non-interest income* 2,504 1,844 35.8% Net operating income before impairment allowances 71,253 65,498 8.8% Operati
Slide 27: Average Balances and Average Interest Rates
Average Balances and Average Interest Rates (HK$m / %) 2024 2023 Assets Average balance Average yield Average balance Average yield Balances and placements with banks 646,302 2.15% 430,345 2.03% and other financial institutions Debt securities investments and other debt instruments 1,264,395 3.74% 1
Slide 28: Fee and Commission Income
Fee and Commission Income HK$m 2024 2023 Change Credit card business 2,559 2,430 5.3% Securities brokerage 2,266 1,826 24.1% Loan commissions 2,236 2,413 -7.3% Insurance 1,018 651 56.4% Trust and custody services 909 790 15.1% Payment services 745 714 4.3% Funds distribution 669 431 55.2% Currency e
Slide 29: Operating Expenses
Operating Expenses HK$m 2024 2023 Change Staff costs 11,470 10,725 6.9% Premises & equipment expenses 1,525 1,394 9.4% Depreciation and amortisation 2,867 2,919 -1.8% Others 2,839 2,721 4.3% Less: Costs directly attributable to insurance contracts (1,207) (1,152) 4.8% Total operating expenses 17,494
Slide 30: Customer Deposits
Customer Deposits HK$m 2024.12 2023.12 Change Total deposits from customers 2,724,221 2,503,841 8.8% CASA 1,263,804 1,187,479 6.4% Demand deposits and current accounts 230,347 216,366 6.5% Savings deposits 1,033,457 971,113 6.4% Time, call and notice deposits 1,449,606 1,314,203 10.3% Structured dep
Slide 31: Advances to Customers
Advances to Customers HK$m 2024.12 2023.12 Change Loans for use in Hong Kong - industrial, commercial and financial 669,434 683,604 -2.1% Property development 166,412 188,115 -11.5% Property investment 90,844 95,384 -4.8% Financial concerns 16,140 16,506 -2.2% Stockbrokers 3,475 1,196 190.6% Wholesa
Slide 32: Gross Advances and Other Accounts by Internal Credit Grade and Stage Classification
Gross Advances and Other Accounts by Internal Credit Grade and Stage Classification 2024.12 2023.12 HK$m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Advances to customers 1,624,103 34,322 17,652 1,676,077 1,662,596 21,046 17,797 1,701,439 Pass 1,621,815 13,574 - 1,635,389 1,659,557 1
Slide 33: Non-bank Mainland Exposures
Non-bank Mainland Exposures On-balance sheet exposure Off-balance Total HK$m Total loans and O/W: for use in Debt securities sheet exposure exposure Subtotal advances Mainland and others Central government, central government-owned entities and their subsidiaries and joint ventures 257,835 61,329 75
Slide 34: Loan Exposure to Property Companies
Loan Exposure to Property Companies As at end of 2024, commercial real-estate (CRE) related loans to corporates amounted to HK$336.2bn, down 8.5% from the end of 2023; accounting for 20.0% of Group’s total loans, down 1.6ppt Loan for use in HK, Mainland, SEA and other regions accounted for 76.5%, 16
Slide 35: Personal Banking and Wealth Management
Personal Banking and Wealth Management Rapid Growth in Solid Growth in Personal Banking Private Banking + 98% + 83% CAGR: +36% 2023 2024 2023 2024 2012 2024 Net Growth in Cross-border New-to-bank High-end Customers* High-end Customers* Assets under Management Wealth management income increased by 28
Slide 36: BOC Life Business Development
BOC Life Business Development HK$m 2024 2023 Change MOODY’S A1 Standard new premiums 17,295 11,567 +49.5% Value of new business (VNB) 3,117 1,884 +65.4% STANDARD A VNB Margin 18.0% 16.3% +1.7 ppt &POOR’S Leading position in overall market and #1 in RMB insurance Leading position maintained in e-chan
BOC Hong Kong (Holdings) — FY2024 Earnings Presentation on 6ix