Dah Sing Financial Holdings Limited · HKEX:440
Dah Sing Financial — H1 2024 Earnings Presentation
20 slides from Dah Sing Financial's earnings presentation, Aug 30, 2024
Slide 1: Dah Sing Financial Group 2024 Interim Results
Dah Sing Financial Group 2024 Interim Results 30 August 2024
Slide 2: Performance Highlights
Performance Highlights • Robust growth in net interest income year-on-year, driven by higher net interest margin • Increase in non-interest income driven by strong growth in wealth management income including bancassurance fee and trading income • Strong growth in net profit mainly driven by higher
Slide 3: Dah Sing Banking Group (2356)
Dah Sing Banking Group (2356) HK$’ million 1H24 1H23 Change Net interest income 2,539 2,269 +12% Net fee and commission income 603 378 +60% Net trading income and other income 145 44 +230% Total operating income 3,287 2,691 +22% Operating expenses (1,595) (1,533) +4% Credit impairment losses (544) (
Slide 4: Dah Sing Financial Holdings (0440)
Dah Sing Financial Holdings (0440) HK$’ million 1H24 1H23 Change Net interest income 2,595 2,333 +11% Net fee and commission income 595 369 +61% Net trading income, net insurance premium and other operating income net of insurance claims and expenses 203 131 +55% Total operating income net of insura
Slide 5: Dah Sing Banking Group
Dah Sing Banking Group ED ivenhee Ca DAH SING FINANCIAL GROUP
Slide 6: Corporate Banking
Corporate Banking • Moderate growth in net interest income with increased loan interest income offset by higher funding cost • Mild growth in non-interest income driven by higher fee and commission income and trading income • Higher provisions reflecting continued weak economic conditions in our mar
Slide 7: Personal Banking
Personal Banking • Double-digit growth in net interest income mainly due to growth in both average loan and deposit volumes with improved margins • Non-interest income grew by 62%, benefitting from growth in bancassurance fees and wealth management income • Revenue improved since second half of last
Slide 8: Treasury and Global Markets
Treasury and Global Markets • Increase in total operating income and segmental profit driven by higher interest margins and higher sales and trading revenues • Customer business remained robust, driven by strong collaboration with personal banking and corporate banking businesses • Conservative liqu
Slide 9: Mainland China and Macau
Mainland China and Macau Macau: • Positive growth in total operating income primarily driven by increase in net interest income • Lower net profit impacted by higher impairment charges Mainland China: • DSB (China): Increase in operating income mainly driven by higher non-interest income • BOCQ: Sta
Slide 10: Dah Sing Financial Holdings
Dah Sing Financial Holdings 10
Slide 11: General Insurance
General Insurance • Double-digit growth in general insurance revenue, with contribution from the core business lines, such as property and motor portfolios • Insurance business generated an increased 5% in “float” available for investment in 1H2024 to HK$754 million as at 30 Jun 2024 • 5.4 percentag
Slide 12: General Insurance and Investment Operations
General Insurance and Investment Operations • Insurance and investment operations in Hong Kong and Macau recorded higher profitability with positive contributions from both underwriting and investments • Net profit after tax from insurance business increased by 20%, mainly driven by improved underwr
Slide 13: Financial Overview
Financial Overview ED ivenhee Ca DAH SING FINANCIAL GROUP 13
Slide 14: DSBG's Operating Income and Net Interest Margin
DSBG’s Operating Income and Net Interest Margin Income from core businesses Net interest margin 4,000 2.2% 2.09% 2.09% 3,500 3,224 3,287 2.01% 145 2.0% 189 1.93% 3,000 2,691 489 603 44 2,500 378 1.8% HK$ million 2,000 1.6% 1,500 2,269 2,546 2,539 1,000 1.4% 84% 79% 77% 500 0 1.2% 1H23 2H23 1H24 2023
Slide 15: DSBG's Operating Expenses and Credit Impairment Losses
DSBG’s Operating Expenses and Credit Impairment Losses Operating expenses Credit impairment losses 1,660 700 1,640 1,636 600 574 544 1,620 500 1,600 1,595 HK$ million HK$ million 1,580 400 1,560 300 1,540 1,533 200 157 1,520 100 1,500 1,480 0 1H23 2H23 1H24 1H23 2H23 1H24 15
Slide 16: Gross Advances to Customers and Trade Bills, and Asset Quality
Gross Advances to Customers and Trade Bills, and Asset Quality Gross advances to customers and trade bills 2,000 ECL allowances Stage 3 Change relative to 2023 year-end: -1.4% 160,000 1,642 Stage 1 & 2 150,000 142.4 bn 145.1 bn 143.1bn 1,500 140,000 1,181 1,078 1,116 HK$ million 130,000 54.0% 24% 23
Slide 17: Key Return Indicators
Key Return Indicators Return on average total assets and Basic EPS of DSBG and DSFH shareholders’ funds of DSBG 5.50 10% 4.99 5.00 8.5% 4.50 8% 7.4% 3.83 4.00 3.49 3.50 6% 3.00 2.89 HK$ 2.50 4% 2.00 1.50 1.32 1.14 0.99 2% 1.00 0.79 0.9% 1.1% 0.50 0% 0.00 1H23 1H24 2022 2023 1H 2023 1H 2024 Return on
Slide 18: Capital Adequacy and Liquidity
Capital Adequacy and Liquidity Capital adequacy ratio Liquidity maintenance ratio 25% 70% 21.2% 20.8% 19.7% 60% 20% 4.3% 3.4% 3.4% 50% 15% 0.7% 0.7% 0.7% 40% 62.5% 64.0% 64.7% 10% 30% 15.6% 16.2% 16.7% 20% 5% 10% 0% 0% 30 Jun 23 31 Dec 23 30 Jun 24 30 Jun 23 31 Dec 23 30 Jun 24 CET1 Additional T1 T2
Slide 19: Conclusions
Conclusions ED ivenhee Ca DAH SING FINANCIAL GROUP 19
Slide 20: Conclusions
Conclusions • Increase in profit attributable to shareholders mainly driven by higher net interest income and non-interest income • Strong performance in wealth management business and development of retail SME related business • Continued growth in premiums and AUM in general insurance businesses u
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