Boc Hong Kong (holdings) Limited · HKEX:2388
Boc Hong Kong (holdings) — FY2010 Earnings Presentation
26 slides from Boc Hong Kong (holdings)'s earnings presentation, Mar 24, 2011
Slide 1: 2010 Annual Results
Proactive Management for Sustainable Growth 2010 Annual Results 2011.03.24
Slide 2: Forward-Looking Statement Disclaimer
Forward-Looking Statement 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, proj
Slide 3: Management Team
Management Team Mr. Gary He Vice Chairman & Chief Executive Mr. Chengwen Zhuo Chief Financial Officer Mr. David Wong Deputy Chief Executive Mr. Jason Yeung Acting Deputy Chief Executive Mr. Jiuzhong Li Chief Risk Officer 2
Slide 4: Agenda
Agenda Key Performance Highlights Financial Results Outlook 3
Slide 5: Key Performance Highlights
Key Performance Highlights Ch She ee ra (92 A) A PR 2 BOC HONG KONG (HOLDINGS) LIMITED
Slide 6: Operating Environment
Operating Environment Global economies and financial markets gradually improving but uncertainties still abound Operating challenges from low interest rates, excessive liquidity and intense competition Further relaxation of offshore RMB market created good business opportunities in the longer
Slide 7: Performance Overview
Performance Overview Solid growth momentum in core businesses powered by strong financial position Proactive management delivered solid and well-balanced results Strong financial position supported by proactive capital and risk management Judicious investments in key strategic business areas w
Slide 8: Sustainable Growth and Solid Financial Position
Sustainable Growth and Solid Financial Position Quality Loan Growth Strong Deposit Base Steady Fee Growth HK$ bn + 19.1% YTD HK$ bn + 21.6% YTD HK$ m + 11.0% YoY Investment & life insurance Traditional banking business 9,479 613 8,536 1,027 515 844 End-Dec 10 End-Dec 09 End-Dec 10 End-Dec 09 2010 20
Slide 9: Key Financial Highlights
Key Financial Highlights HK$m 2010 2010 2009 2009 % %YoY YoY Net operating income before impairment allowances 27,508 26,055 ↑ 5.6 Operating profit before impairment allowances 17,924 13,914 ↑ 28.8 Profit attributable to shareholders 16,196 13,930 ↑ 16.3 Earnings per share (HK$) 1.532 1.318 ↑ 16.3 D
Slide 10: Financial Results
Financial Results Ch She ee ra (92 A) A PR 2 BOC HONG KONG (HOLDINGS) LIMITED
Slide 11: Condensed Income Statement
Condensed Income Statement Record highs in net operating income and profit attributable to shareholders 2010 2010 2009* 2009* % %YoY YoY HK$ m Net interest income 18,734 17,932 ↑ 4.5 Net fee and commission income 7,044 6,508 ↑ 8.2 Other operating income 1,730 1,615 ↑ 7.1 Net operating income before
Slide 12: Net Interest Income
Net Interest Income Net interest income increased Growth in average interest earning assets offset NIM pressure 2010 2010 2009 2009 % %YoY YoY HK$ m Interest income 23,449 21,684 ↑ 8.1 Interest expense 4,715 3,752 ↑ 25.7 Net interest income 18,734 17,932 ↑ 4.5 Average interest earning assets 1,255,8
Slide 13: Non-interest Income
Non-interest Income Broad-based fee income growth in traditional banking businesses HK$ m 2010 2010 2009 2009 % %YoY YoY Net fee and commission income 7,044 6,508 ↑ 8.2 Investment and life insurance* 3,736 3,886 ↓ 3.9 Traditional banking business* 5,743 4,650 ↑ 23.5 Bill commissions 751 627 ↑ 19.8 L
Slide 14: Investment and Life Insurance Income
Investment and Life Insurance Income Life insurance business recorded satisfactory growth Stockbroking income decreased from a high base in 2009 2010 2010 2009 2009 % %YoY YoY HK$ m Investment and life insurance fee income 3,736 3,886 ↓ 3.9 Stockbroking 3,279 3,638 ↓ 9.9 Bond distribution 59 39 ↑ 51
Slide 15: Operating Expenses
Operating Expenses Operating expenses decreased from a higher base in 2009 Judicious investments in strategic business areas Operating Operating Expenses Expenses Number Number of of Branches Branches HK$ m 12,141 (268) (272) 294 296 9,584 4,872 1,895 Others 1,131 Depreciation 1,018 End-Dec 10 End-D
Slide 16: Net reversal / (charge) of Impairment Allowances
Net reversal / (charge) of Impairment Allowances Net reversal of impairment allowances due to improved loan quality and write-back of securities provisions HK$ m 2010 2010 2009 2009 % %YoY YoY Advances to customers Individual assessment - Net reversal/(charge) of allowances before recoveries 149 (24
Slide 17: Loan Quality
Loan Quality Sound risk management and proactive growth strategy translated into solid loan quality Classified Classified or or Impaired Impaired Loan Migration Migration of of Classified Classified Loans Loans Loan Ratio Ratio % HK$ bn -20 bps YTD 0.34 +0.35 0.14 -0.05 1.77 -0.84 -0.36 0.87 End-Dec
Slide 18: Condensed Balance Sheet
Condensed Balance Sheet Robust growth in total assets supported by development of core business and the expansion of RMB business HK$ m End-Dec 10 End-Dec 10 End-Dec 09* End-Dec 09* % % Change Change Total assets 1,661,040 1,212,794 ↑ 37.0 Cash and balances with banks and other financial institution
Slide 19: Customer Deposits
Customer Deposits Effective deposit strategy to support the growth of our business HK$ m End-Dec 10 End-Dec 10 End-Dec 09 End-Dec 09 % %Change Change Demand deposits and current accounts 70,453 65,440 ↑ 7.7 Saving deposits 528,035 495,512 ↑ 6.6 Time, call and notice deposits 428,545 281,369 ↑ 52.3 S
Slide 20: Advances to Customers
Advances to Customers Sustained strong growth momentum Improved pricing and portfolio mix of corporate loans HK$ m End- End-Dec 10 End-Dec 10 End- End-Dec 09 End-Dec 09 % %Change Change Loans for use in HK - corporate 206,947 195,520 ↑ 5.8 Loans for use in HK - individual 180,140 156,690 ↑ 15.0 Resi
Slide 21: Securities Investments
Securities Investments Proactive investment strategy to optimise portfolio mix and return End- End-Dec 10 End-Dec 10 End- End-Dec 09 End-Dec 09 % %Change Debt Debt securities securities by bycredit credit rating rating HK$ m Change 2% Sovereign 119,124 76,824 ↑ 55.1 Public Sector 41,018 34,529 ↑ 18.
Slide 22: Segmental Performance
Segmental Performance Operating Operating Income Income by by Segments Segments HK$ m 27,508 26,055 Personal: Strong growth in 771 mortgage and credit cards 471 business 5,941 6,404 Corporate: Robust growth on solid clientele base and 9,360 enhanced business capabilities 8,187 Treasury: Proact
Slide 23: Mainland Business
Mainland Business Effective business strategy to drive growth Satisfactory growth of loan and deposit businesses Operating Operating Income Income Operating Operating Expenses Expenses HK$ m + 10.1% YoY HK$ m + 18.0% YoY 1,059 668 962 566 2010 2009 2010 2009 Deposits Deposits from from customers cus
Slide 24: Outlook
Outlook Oh She ee ra (32 AR) A BR ZS BOC HONG KONG (HOLDINGS) i
Slide 25: Outlook and Strategy
Outlook and Strategy Proactive and balanced approach for long-term sustainable growth Maintain proactive management to ensure quality growth and financial strength Continue to enhance our product and service capabilities to capture growth Optimise customer base and distribution network to enha
Slide 26: 2010 Annual Results
Proactive Management for Sustainable Growth 2010 Annual Results 2011.03.24
BOC Hong Kong (Holdings) — FY2010 Earnings Presentation on 6ix