Dah Sing Financial Holdings Limited · HKEX:440
Dah Sing Financial — H1 2022 Earnings Presentation
21 slides from Dah Sing Financial's earnings presentation, Aug 24, 2022
Slide 1: Dah Sing Financial Group 2022 Interim Results
Dah Sing Financial Group 2022 Interim Results 24 August 2022
Slide 2: Performance highlights
Performance highlights • Stable pre-provision operating profit from our banking business with improvement in NIM despite difficult operating environment • Non-interest income decreased as a result of weak customer investment appetite and continued suspension of bancassurance sales • Weaker credit qu
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$’ million 1H22 1H21 Change Net interest income 2,020 1,963 +3% Net fee and commission income 482 642 -25% Net trading income and other income 125 116 +8% Total operating income 2,627 2,721 -3% Operating expenses (1,391) (1,451) -4% Credit impairment losses (305) (117
Slide 5: Dah Sing Financial Holdings (0440)
Dah Sing Financial Holdings (0440) HK$’ million 1H22 1H21 Change Net interest income 2,028 1,968 +3% Net fee and commission income 475 636 -25% Net trading income, net insurance premium and other operating income net of insurance claims and expenses 263 275 -4% Total operating income net of insuranc
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% 7.4% 6% 4% 2% 0.9% 0.9% 0% 1H21 1H22 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% 50% 18.0% 18.1% 18.0% 3.2% 3.4% 3.4% 40% 15% 0.6% 0.5% 0.5% 30% 46.1% 46.9% 45.3% 10% 20% 14.2% 14.2% 14.1% 5% 10% 0% 0% 30 Jun 21 31 Dec 21 30 Jun 22 30 Jun 21 31 Dec 21 30 Jun 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 : 150,000 143.6 bn 141.1 bn -5.0% 140,000 Loans for use outside HK 130,000 24% 25% 120,000 26% 110,000 Trade finance and 9% 8% trade bills 100,000 6% HK$ million 90,000 12% 11% 11% 80,000 Credit card advanc
Slide 10: Net interest margin
Net interest margin 1.90% 1.80% 1.74% 1.74% 1.72% 1.71% 1.70% 1.60% 1.50% 1.40% 1.30% 1.20% 2021 average 1H21 2H21 1H22 10
Slide 11: Income from core businesses
Income from core businesses 3,000 2,721 2,663 2,627 116 4% 126 5% 5% 2,500 125 24% 21% 18% Net trading income 642 556 482 and other operating 2,000 income HK$ million 1,500 Net fee and commission income 1,963 72% 74% 1,981 2,020 77% 1,000 Net interest income 500 0 1H21 2H21 1H22 11
Slide 12: Credit quality
Credit quality 350 305 300 256 250 HK$’m 200 Credit 150 117 impairment 100 losses 50 0 1H21 2H21 1H22 30 Jun 21 31 Dec 21 30 Jun 22 0.0% Overdue and 0.3% rescheduled 0.6% loans ratio 0.9% Impaired loan 0.91% 0.81% 1.2% 0.96% 0.97% ratio 1.5% 1.30% 1.41% 1.8% 12
Slide 13: Corporate banking
Corporate banking • Loan growth inhibited by weak market demand for new loans • Lower net interest income mainly driven by lower average loan volumes • Decrease in loan fees and commission income which was partly offset by increase in FX-related and insurance fee income • First foreign bank to recei
Slide 14: Personal banking
Personal banking • Moderate increase in net interest income due mainly to growth in average loan volumes in 1H 2022 vs 1H 2021 • Maintained a relatively stable product mix in our portfolio • Non-interest income decreased as a result of weak customer investment appetite and continued suspension of ba
Slide 15: Treasury & Global Markets
Treasury & Global Markets • Improved segmental profit due mainly to increase in net interest income and trading income • Higher trading income benefiting from improved contribution from funding swap activities • Conservative liquidity management – average Liquidity Maintenance Ratio at level in exce
Slide 16: Overseas banking
Overseas banking Macau: • Net profit impacted by increase in loan impairment charge • Slight contraction in loan balance due to weak domestic demand but moderate growth in deposit PRC: • DSB (China): Stable profitability with credit risk closely monitored • Modest increase in BOCQ’s profit contribut
Slide 17: Dah Sing Financial Group
Dah Sing Financial Group ED ivenhee Ga DAHSING FINANCIAL GROUP
Slide 18: General insurance - Underwriting
General insurance - Underwriting • Respectable increase in gross premium income • Underwriting results decreased but still recorded a positive contribution despite difficult operating environment • Stable combined ratio given effective cost management • Mild increase in float (i.e. reserves) to HK$6
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 ED ivenhee Ga DAHSING FINANCIAL GROUP 20
Slide 21: Conclusions
Conclusions • Relatively stable business performance with our core businesses remaining resilient despite a difficult operating environment • Managing overall credit quality remained a top priority • Capital and liquidity positions continued to be robust • Strategic alliance with Norinchukin Bank of
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