Dah Sing Financial Holdings Limited · HKEX:440
Dah Sing Financial — H1 2021 Earnings Presentation
20 slides from Dah Sing Financial's earnings presentation, Aug 25, 2021
Slide 1: Dah Sing Financial Group 2021 Interim Results
Dah Sing Financial Group 2021 Interim Results 25 August 2021
Slide 2: Performance highlights
Performance highlights • Modest growth in net interest income with improved net interest margin and modest growth in loans • Continued improvement in wealth management fee income driving higher fee and commission income • Improved credit quality, with reduction in impaired loan ratio to below 1% • N
Slide 3: Financial Highlights
Financial Highlights ED ivenhee Ga DAHSING FINANCIAL GROUP
Slide 4: Dah Sing Banking Group (2356)
Dah Sing Banking Group (2356) HK$’ million 1H21 1H20 Change Net interest income 1,963 1,857 +6% Net fee and commission income 642 578 +11% Net trading income and other income 116 183 -37% Total operating income 2,721 2,618 +4% Operating expenses (1,451) (1,392) +4% Credit impairment losses (117) (36
Slide 5: Dah Sing Financial Holdings (0440)
Dah Sing Financial Holdings (0440) HK$’ million 1H21 1H20 Change Net interest income 1,968 1,873 +5% Net fee and commission income 636 572 +11% Net trading income, net insurance premium and other operating income net of insurance claims and expenses 275 307 -10% Total operating income net of insuran
Slide 6: Dah Sing Banking Group
Dah Sing Banking Group ED ivenhee Ga DAHSING FINANCIAL GROUP
Slide 7: Key return indicators
Key return indicators 7.9% 8% 7.0% 6% 4% 2% 0.8% 0.9% 0% 1H20 1H21 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% 16.9% 17.6% 18.0% 50% 3.3% 3.2% 40% 15% 3.3% 0.5% 0.6% 0.5% 30% 49.6% 47.8% 46.1% 10% 14.2% 20% 13.1% 13.8% 5% 10% 0% 0% 30 Jun 20 31 Dec 20 30 Jun 21 30 Jun 20 31 Dec 20 30 Jun 21 CET1 Additional T1 T2 8
Slide 9: Gross advances to customers and trade bills
Gross advances to customers and trade bills Growth relative to 150,000 2020 year-end : 141.3 bn 141.4 bn 143.6 bn 1.6% 140,000 130,000 Loans for use outside HK 120,000 26% 26% 24% 110,000 Trade finance and 100,000 9% 9% 9% trade bills 90,000 HK$ million 12% 12% 11% 80,000 Credit card advances 70,000
Slide 10: Net interest margin
Net interest margin 1.90% 1.80% 1.74% 1.70% 1.66% 1.63% 1.59% 1.60% 1.50% 1.40% 1.30% 1.20% 2020 average 1H20 2H20 1H21 10
Slide 11: Income from core businesses
Income from core businesses 3,000 2,618 2,631 2,721 116 4% 2,500 183 7% 188 7% Net trading income 642 24% 578 22% 604 23% and other operating 2,000 income HK$ million 1,500 Net fee and commission income 1,857 71% 1,839 70% 1,963 72% 1,000 Net interest income 500 0 1H20 2H20 1H21 11
Slide 12: Credit quality
Credit quality 400 365 350 300 282 250 HK$’m 200 Credit 150 117 impairment 100 losses 50 0 1H20 2H20 1H21 30 Jun 20 31 Dec 20 30 Jun 21 0.0% Overdue and rescheduled 0.5% loans ratio Impaired loan 1.0% ratio 0.94% 0.93% 0.91% 0.96% 1.02% 1.14% 1.5% 12
Slide 13: Corporate banking
Corporate banking • Better profitability due to much improved credit quality with lower impairment charges • Net interest income helped by lower funding cost in 1H 2021 • Modest loan growth, mainly from syndicated loans, investment and trade loans • Trade volume growth driven by export trade • Focus
Slide 14: Personal banking
Personal banking • Lower net interest income due to a slight decrease in the proportion of higher yielding assets in its loan portfolio • Lower average funding cost was due mainly to effective deposit cost management • Modest overall loan growth driven by residential mortgage and personal loans • Im
Slide 15: Treasury
Treasury • Stable segmental profit due to 26% increase in net interest income offset by softer trading 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
Slide 16: Overseas banking
Overseas banking Macau: • Considerably improved profitability brought about mainly by write- back of loan impairment provisions • Slight contraction in loan balance due to weak domestic demand and intense competition PRC: • DSB (China): Steady performance with credit risk closely monitored • BOCQ’s
Slide 17: Dah Sing Financial Group
Dah Sing Financial Group ED ivenhee Ga DAHSING FINANCIAL GROUP
Slide 18: General insurance
General insurance • Small decline in net premium income amid softer general insurance market in 1H 2021 • Stable combined ratio given effective cost management • Mild increase in float (i.e. reserves) to HK$654 million • Robust solvency providing capacity to generate premiums and investment income o
Slide 19: Conclusions
Conclusions ED ivenhee Ga DAHSING FINANCIAL GROUP 19
Slide 20: Conclusions
Conclusions • Improved business performance and profitability with stabilising economy • Better net interest income and fee income resulted in higher annualised return on equity • Improved asset quality with meaningful reduction in credit cost • Capital and liquidity positions continued to be robust
Dah Sing Financial Group — H1 2021 Earnings Presentation on 6ix