Boc Hong Kong (holdings) Limited · HKEX:2388
Boc Hong Kong (holdings) — H1 2002 Earnings Presentation
19 slides from Boc Hong Kong (holdings)'s earnings presentation, Aug 27, 2002
Slide 1: 2002 Interim Results Press Conference
2002 Interim Results Press Conference August 27, 2002
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: Presenters on behalf of our Management Team
Presenters on behalf of our Management Team Attendees Attendees Title Title Dr. Liu Jinbao Vice Chairman and Chief Executive Mr. Zhu Chi Deputy Chief Executive Mr. Ding Yansheng Deputy Chief Executive Mr. Or Man Ah Deputy Chief Executive Mr. David Lam Deputy Chief Executive Mr. Norman Law Chief Fina
Slide 4: Agenda
Agenda Performance Highlights 1H2002 Financial Results and Operating Performance Strategic Focus 3
Slide 5: Key Interim Results Highlights
Key Interim Results Highlights Achieved annualized ROAE of 12.9% 1H2002 net profit of HK$3.4 billion ¾ Represented 54% of our 2002 profit forecast ¾ Exceeded our 2001 full year profit of HK$2.8 billion Adjusted 1H2002 EPS of HK$0.323, greater than 2001 adjusted EPS of HK$0.262 NPL levels sig
Slide 6: 2002 Interim Highlights
2002 Interim Highlights P&L Six Six Months Months % Year Year Ended Ended Ended % Change Change Ended 30 30 June June 1H01 31 Dec 31 Dec 1H01 vs vs (HK$ million) 2002 2001 1H02 1H02 2001 2002 2001 2001 Total Operating Income 8,901 9,990 (10.9)% 19,009 Total Operating Expenses 2,899 2,868 1.1% 5,847
Slide 7: 2002 Interim Highlights: Balance Sheet
2002 Interim Highlights Balance Sheet (HK$ million) As As at at 30 30 June June 2002 2002 As As at at 31 31 Dec Dec 2001 2001 Total Assets 737,778 766,140 Total Liabilities 683,040 712,904 Gross Loans 317,634 323,038 Total Customer Deposits 611,470 606,428 Shareholders’ Funds 53,654 52,170 6
Slide 8: 2002 Interim Highlights: Key Financial Ratios
2002 Interim Highlights Key Financial Ratios Six Six Months Months Year Year Ended Ended Ended Ended 30 30 June June 31 Dec 31 Dec (%) 2002 2002 2001 2001 2001 2001 Net Interest Margin 1.98 1.97 1.95 Non- Non-Interest Income / Operating Income 22.58 22.58 21.16 Cost to Income Ratio 32.57 28.71 30.76
Slide 9: Summary of P&L
Summary of P&L Six Six Months Months Ended Ended 30 30 June June (HK$ million) 2002 2002 2001 2001 Net Interest Income 6,891 7,734 Other Operating Income 2,010 2,256 Total Operating Income 8,901 9,990 Operating Expenses 2,899 2,868 Operating Profit before Provisions 6,002 7,122 Charge for Bad and Do
Slide 10: Key Trends
Key Trends Net Net Interest Interest Income Income Other Other Operating Operating Income Income 7,734 7,253 6,891 2,256 2,010 1,766 1H 2001 2H 2001 1H 2002 1H 2001 2H 2001 1H 2002 Operating Operating Profit Profit Before Before Provisions Provisions Net Net Interest Interest Margin Margin 7,122 1.9
Slide 11: Fees and Commission Income
Fees and Commission Income HK$ million 2,000 1,846 1,800 1,705 387 1,600 328 1,400 257 233 1,200 6 261 99 1,000 206 73 800 130 58 137 600 400 732 644 200 0 1H 2001 1H 2002 Bills and Loans Commission Payment Services Insurance Securities Asset Management and Trust Service Credit Card Others 10
Slide 12: Operating Expenses
Operating Expenses Six Six Months Months Ended Ended 30 30 June June % % Change Change (HK$ million) 2002 2002 2001 2001 Staff Costs 1,761 1,905 (7.6)% Premises and Equipment 360 376 (4.3)% Depreciation 359 213 68.5% Others 419 374 12.0% Operating Expenses 2,899 2,868 1.1% 11
Slide 13: Provisions for Bad and Doubtful Debt
Provisions for Bad and Doubtful Debt As As at at 30 30 June June 2002 2002 As As at at 31 31 Dec Dec 2001 2001 (HK$ million) General Provisions 6,538 6,538 Specific Provisions 8,999 10,576 LLR 15,537 17,114 Total Loans 317,634 323,038 NPLs 28,498 35,512 SP/NPLs 31.6% 29.8% GP/Total Loans 2.1% 2.0% L
Slide 14: Assets Breakdown
Assets Breakdown (HK$ million) As As at at 30 30 June June 2002 2002 As As at at 31 31 Dec Dec 2001 2001 Cash and short-term funds 109,408 196,255 Interbank placements 100,918 80,773 Trade bills 584 382 Certificates of deposit held 17,471 19,474 HKSAR Gov’t certificates of indebtedness 28,290 25,510
Slide 15: Loan Portfolio Breakdown
Loan Portfolio Breakdown Industry Sectors As As at at 30 30 June June 2002 2002 As As at at 31 31 Dec Dec 2001 2001 % % Change Change HK$ HK$ million million % % HK$ HK$ million million % % Industrial, Commercial and Financial 173,230 54.5% 178,880 55.4% (3.2)% Individuals 118,463 37.3% 115,540 35.8
Slide 16: Non-Performing Loans
Non-Performing Loans NPLs NPLs in in Hong Hong Kong Kong Total Total NPLs NPLs (HK$ million) (HK$ million) NPL Ratio (%) 14.1 30,043 % 25,821 50,000 19. 12 8% 10.99% 45,000 10 40,000 35,512 8.97% 35,000 8 Dec 01 Jun 02 30,000 28,498 NPLs NPLs in in China China 25,000 6 (HK$ million) 20,000 51.6 5,13
Slide 17: Liabilities Breakdown
Liabilities Breakdown (HK$ million) As As at at 30 30 June, June, 2002 2002 As As at at 31 31 Dec, Dec, 2001 2001 HKSAR currency notes in circulation 28,290 25,510 Interbank deposits 16,115 55,295 Customer deposits 611,470 606,428 Certificates of deposit issued 5,000 5,000 Other accounts and provisi
Slide 18: Strategic Focus
Strategic Focus Key Key Focus Focus Areas Areas Introduce tailored products Target higher net worth customers and SME customers Revenue Expand non-interest income, such as credit card and investment Revenue Enhancement Enhancement funds Penetrate RMB business through mainland branches Enha
Slide 19: Strategic Focus (Cont'd)
Strategic Focus (Cont’d) Key Key Focus Focus Areas Areas Redesign and rationalize branch network and distribution channels Cost Cost Synergies Automate loan processes Synergies Increase IT expenses to enhance hardware/infrastructure and software Optimize capital structure Capital Capital E
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