Boc Hong Kong (holdings) Limited · HKEX:2388

Boc Hong Kong (holdings) — H1 2017 Earnings Presentation

29 slides from Boc Hong Kong (holdings)'s earnings presentation, Aug 30, 2017

  1. Slide 1: A Century of Services, Always With You: 2017 Interim Results

    A CENTURY OF SERVICES ALWAYS WITH YOU 2017 Interim Results 2017.08.30 Mobile access QR code for 2017 Interim Results Announcement

  2. 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

  3. Slide 3: New Reporting Basis in this Presentation

    New Reporting Basis in this Presentation ► The acquisition of Bank of China (Thai) Public Company Limited was completed on 9 January 2017 ► The disposal of Chiyu Banking Corporation Limited was completed on 27 March 2017  The merger accounting method was applied in financial statements for the comb

  4. Slide 4: Management Team

    Management Team Mr Yue Yi Vice Chairman & Chief Executive Mr Li Jiuzhong Executive Director & Chief Risk Officer Mr Lin Jingzhen Deputy Chief Executive Mr Yuan Shu Deputy Chief Executive Mr Zhong Xiangqun Chief Operating Officer Mdm Sui Yang Chief Financial Officer Mrs Ann Kung Deputy Chief Executiv

  5. Slide 5: Agenda

    Agenda 1 Strategy Implementation for 1H2017 1 2 Financial Performance for 1H2017 1 3 Outlook and Business Focus in 2H2017 1 4

  6. Slide 6: Strategy Implementation for 1H2017

    Strategy Implementation for 1H2017

  7. Slide 7: Outstanding Opening for a New Century of Services

    Outstanding Opening for a New Century of Services Record high attributable profit Solid capital strength HK$ m 2H 1H 2015.12 2016.12 2017.06 12,453 CET 1 ratio 12.83% 17.64% 17.66% Growth 14,627 rate 24.5%* Tier 1 ratio 12.89% 17.69% 17.66% 11,749 Total capital ratio 17.86% 22.35% 21.76% 2016 2017 O

  8. Slide 8: Outperformance Underpinned by Strong Growth in Major Business Segments

    Outperformance Underpinned by Strong Growth in Major Business Segments Personal Corporate Banking Treasury Banking +12.7% +14.2% +19.9% YoY* YoY* YoY*  No. of new mortgage cases up 74%  Sustained top arranger position in the  Following the SH-HK/SZ-HK Stock Connect yoy and market share up 1.61ppt

  9. Slide 9: ASEAN Acquisitions Accelerated Regional Business Development

    ASEAN Acquisitions Accelerated Regional Business Development Malaysia Subsidiary Thailand Subsidiary Jakarta Branch Manila Branch Completed Completed Completed In progress 20 Dec 28 Feb 2016 2017 17 Oct 9 Jan 10 Jul Brunei Branch Cambodia Branch Ho Chi Minh Commenced Signed Asset Branch operations P

  10. Slide 10: Branch Network Transformation Strengthens Competitive Edge and Service Efficiency

    Branch Network Transformation Strengthens Competitive Edge and Service Efficiency Productivity enhanced through Remarkable earnings growth in branch operations segmental structure optimisation  Promoted omni-channel development and optimised Mid-to-high end +19.8% internal structure to facilitate c

  11. Slide 11: Eight Key Business Platforms Development Provides Potential for Non-interest Income Growth

    Eight Key Business Platforms Development Provides Potential for Non-interest Income Growth Asset BOC Credit Card Private Banking BOC Life Management • Maintained • Promoted product • Gross premium up • Granted QFII leadership in optimisation, cross- 13% yoy, continued status by China UnionPay border

  12. Slide 12: Leadership in FinTech Innovation Won Market Recognitions

    Leadership in FinTech Innovation Won Market Recognitions Gold Award in Private Sector in Gold Award for “Best FinTech “IT Governance Achievement (Emerging Solutions / Awards” by the Information Payment Innovation)" by the Hong Kong Systems Audit and Control Institute of Bankers Association Successfu

  13. Slide 13: Celebrating our Centennial Brand with Special Appreciation to Shareholders

    Celebrating our Centennial Brand with Special Appreciation to Shareholders To celebrate - year of services of BOC to Hong Kong and the successful disposal of Chiyu, as well as to show our appreciation to our loyal shareholders, the Board is pleased to announce special dividend payment of HK$1bn, tak

  14. Slide 14: Financial Performance for 1H2017

    Financial Performance for 1H2017

  15. Slide 15: Solid Balance Sheet Expansion with Record-setting Profit

    Solid Balance Sheet Expansion with Record-setting Profit Solid growth in assets and liabilities Notable growth in PPoP Growth rate: Growth HK$ bn HK$ m 13.0% rate: Growth 14.0% rate: 17,219 2,640.0 17.1% 2,336.8 2,398.2 2,104.0 14,710 Total assets Total liabilities 1H2016 1H2017 2016.12 2017.06 Cont

  16. Slide 16: Outperformance in Loan and Deposit Growth with Optimized Asset & Liability Mix

    Outperformance in Loan and Deposit Growth with Optimized Asset & Liability Mix Fast growth in loans and deposits Further increase in local market share Growth HK$ bn rate: Growth 9.3% 12.31% 13.64% rate: 1,653.2 12.9% 1,512.3 977.8 1,104.0 +0.27% +0.50% Customer loans Customer deposits 2016.12 2017.

  17. Slide 17: Margins Improvements on Rising Market Interest Rates

    Margins Improvements on Rising Market Interest Rates Market interest rates NIM driven NII growth - up 41% yoy 10% HK$ m 16,879 9% 1M CNY HIBOR 13,558 11,972 1.62% 8% 1.35% 7% 1.28% 6% 1H2016 2H2016 1H2017 Net interest income Net interest margin 5% 1Y CNY Steady growth in AIEA HIBOR 4% HK$ bn Growth

  18. Slide 18: Steady Fee Income Growth and Sound Operating Efficiency

    Steady Fee Income Growth and Sound Operating Efficiency Steady growth in net fee income Net fee income by major category Investment Growth 1H2017 1,704 HK$ m 5,615 5,662 HK$ m and rate: 4,956 1,513 12.6% 1H2016 Insurance Traditional 3,706 business 3,708 Investment and insurance: securities brokerage

  19. Slide 19: Prudent Risk Management with Improved Asset Quality

    Prudent Risk Management with Improved Asset Quality Decline in both NPL amount and ratio Increase in provision coverage HK$ m Up 2,169 17.4ppt 2,050 0.72% 0.70%* 168.1% 150.7% 0.22% 0.19% 2016.12 2017.06 2016.12 2017.06 Classified or impaired loans Ratio (BOCHK) Ratio (Market) *Note: Market data as

  20. Slide 20: Outlook and Business Focus in 2H2017

    Outlook and Business Focus in 2H2017

  21. Slide 21: More Opportunities than Challenges in 2H2017

    More Opportunities than Challenges in 2H2017 Opportunities Challenges  The Belt and Road initiative is a new  Uncertainties to remain in the global growth driver for the global economy financial markets  The Guangdong-Hong Kong-Macau  Intensifying market competition will Greater Bay Area project

  22. Slide 22: Business Focus in 2H2017

    Business Focus in 2H2017 Our goal is to become an internationalised regional bank, and a flagship overseas Strategic financial institution for Chinese banks. We aim to achieve this by establishing a leading position in the Hong Kong market, strengthening our regional development Position capabilitie

  23. Slide 23: Q&A Session

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  24. Slide 24: Appendix

    Owikte ICG BOC HONG KONG (HOLDINGS) LIMITED © op SR ae rs (12 AR) ABR 2S]

  25. Slide 25: Condensed Income Statement

    Condensed Income Statement Restated Restated HK$m 1H2017 1H2016 YoY% 2H2016 HoH% Net interest income 16,879 11,972 41.0 13,558 24.5 Net fee and commission income 5,662 5,615 0.8 4,956 14.2 Other operating income 783 2,924 -73.2 2,897 -73.0 Net operating income before impairment allowances 23,324 20,

  26. Slide 26: Non-interest Income

    Non-interest Income Restated Restated HK$m 1H2017 1H2016 YoY% 2H2016 HoH% Fee and commission income Credit card business 1,536 1,863 -17.6 1,840 -16.5 Securities brokerage 1,053 852 23.6 1,102 -4.4 Loan commissions 2,051 2,191 -6.4 1,309 56.7 Insurance 628 842 -25.4 788 -20.3 Funds distribution 440

  27. Slide 27: Condensed Balance Sheet

    Condensed Balance Sheet Restated HK$m 30.06.2017 31.12.2016 % Change Cash and balances with banks and other financial institutions 399,830 232,546 71.9 Placements with banks and other financial institutions 81,856 70,392 16.3 Securities investments 630,473 654,557 -3.7 Advances and other accounts 1,

  28. Slide 28: Advances to Customers

    Advances to Customers HK$m 30.06.2017 As a % of total % Change Loans for use in HK - corporate 427,436 38.7 13.8 Property development 96,185 8.7 30.6 Property investment 53,729 4.8 -0.3 Financial concerns 7,611 0.7 40.0 Stockbrokers 1,657 0.1 -37.4 Wholesale and retail trade 38,436 3.5 9.5 Manufactu

  29. Slide 29: Customer Deposits

    Customer Deposits Restated HK$m 30.06.2017 31.12.2016 % Change Demand deposits and current accounts 191,513 173,934 10.1 Saving deposits 845,593 796,805 6.1 Time, call and notice deposits 613,024 538,142 13.9 Structured deposits 3,072 3,425 -10.3 Total deposits from customers 1,653,202 1,512,306 9.3

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