Boc Hong Kong (holdings) Limited · HKEX:2388
Boc Hong Kong (holdings) — FY2012 Earnings Presentation
25 slides from Boc Hong Kong (holdings)'s earnings presentation, Mar 26, 2013
Slide 1: Reaching New Heights with Balanced Growth - 2012 Annual Results
Reaching New Heights with Balanced Growth 2012 Annual Results 2013.03.26
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: Management Team
Management Team Mr. Gary He Vice Chairman & Chief Executive Mr. Gao Yingxin Executive Director & Deputy Chief Executive Mr. Zhuo Chengwen Chief Financial Officer Mr. David Wong Deputy Chief Executive Mr. Jason Yeung Deputy Chief Executive 2
Slide 4: Agenda
Agenda Key Performance Highlights Financial Results Outlook and Strategy 3
Slide 5: Key Performance Highlights
Key Performance Highlights Cp ER a ie (42 AR) A PR ZB) BOC HONG KONG (HOLDINGS) LIMITED
Slide 6: Operating Environment
Operating Environment Overall macro environment remained tough Low interest rates, intense competition and softened demand continued to post challenges for banks New business opportunities arising from the further development of the offshore RMB market 5
Slide 7: Performance Overview
Performance Overview Record financial results Balanced strategy delivered solid performance Captured new opportunities with strong franchise Encouraging business development 6
Slide 8: Key Financial Highlights
Key Financial Highlights % %YoY YoY 2012 2012 2011 2011 % %YoY YoY HK$m (ex- (ex-Lehman*) (ex-Lehman*) Net operating income before impairment allowances 35,760 30,846 ↑ 15.9 Operating profit before impairment allowances 24,358 22,984 ↑ 6.0 ↑ 20.2 Profit attributable to the equity holders 20,930 20,4
Slide 9: Strong Financial Position
Strong Financial Position Solid Deposit Base Healthy Loan Growth Sound Loan Quality HK$ bn +7.2% YoY HK$ bn + 11.3% YoY Classified or Impaired Loan Ratio 1,147 1,229 699 778 0.10% 0.26% 31.12.2011 31.12.2012 31.12.2011 31.12.2012 31.12.2011 31.12.2012 Steady LDR Stable Liquidity Strong Capital Posit
Slide 10: Financial Results
Financial Results Cp ER a ie (42 AR) A PR ZB) BOC HONG KONG (HOLDINGS) LIMITED
Slide 11: Condensed Income Statement
Condensed Income Statement Encouraging growth in core income and profits* HK$ m 2012 2012 2011 2011 % %YoY YoY Net interest income 24,708 21,979 ↑ 12.4 Net fee and commission income 7,906 7,833 ↑ 0.9 Other operating income 3,146 1,034 ↑ 204.3 Net operating income before impairment allowances 35,760
Slide 12: Net Interest Income
Net Interest Income Solid net interest income growth driven by NIM expansion HK$ m 2012 2012 2011 2011 % %YoY YoY Interest income 35,413 31,931 ↑ 10.9 Interest expense 10,705 9,952 ↑ 7.6 Net interest income 24,708 21,979 ↑ 12.4 Average interest earning assets 1,542,565 1,662,201 ↓ 7.2 Net interest m
Slide 13: Non-interest Income
Non-interest Income Net fee and commission income recorded mild growth Other operating income surged mainly due to higher net trading gains HK$ m 2012 2012 2011 2011 % %YoY YoY Net fee and commission income 7,906 7,833 ↑ 0.9 Fee and commission income Credit cards business 3,307 2,887 ↑ 14.5 Securiti
Slide 14: Operating Expenses
Operating Expenses Disciplined cost control while investing in our franchise Core Core Operating Operating Expenses* Expenses* Number Number of of Branches Branches HK$ m + 7.9% YoY 11,498 10,659 294 306 2,143 (266) (269) 1,954 1,493 Others 1,277 1,390 1,456 Depreciation 31.12.2011 31.12.2012 ( ) -
Slide 15: Net Charge of Impairment Allowances
Net Charge of Impairment Allowances Net charge of IA impairment allowances increased from a low base HK$ m 2012 2012 2011 2011 % %YoY YoY Advances to customers Net charge of allowances before recoveries - individual assessment (512) (12) ↑ 4,166.7 - collective assessment (606) (720) ↓ 15.8 Recoverie
Slide 16: Loan Quality
Loan Quality Loan quality remained sound Migration Migration of of Classified Classified or or Impaired Impaired Loans Loans HK$ bn +2.12 -0.01 -0.75 -0.02 2.05 0.71 31.12.2011 Downgrade Upgrade Collection Write-off 31.12.2012 15
Slide 17: Condensed Balance Sheet
Condensed Balance Sheet Proactive asset and liability management to improve profitability HK$ m 31.12.2012 31.12.2012 31.12.2011 31.12.2011 % % YoY YoY Cash and balances with banks and other financial institutions 198,748 278,795 ↓ 28.7 Placements with banks and other financial institutions 66,025 1
Slide 18: Customer Deposits
Customer Deposits Flexible deposit strategy and cautious funding cost control HK$ m 31.12.2012 31.12.2012 31.12.2011 31.12.2011 % % YoY YoY Demand deposits and current accounts 97,295 77,440 ↑ 25.6 Saving deposits 603,565 504,868 ↑ 19.5 Time, call and notice deposits 525,430 563,643 ↓ 6.8 Structured
Slide 19: Advances to Customers
Advances to Customers Sustained healthy and broad-based loan growth HK$ m 31.12.2012 31.12.2012 31.12.2011 31.12.2011 % % YoY YoY Loans for use in HK - corporate 252,877 237,557 ↑ 6.4 Loans for use in HK - individual 227,876 206,983 ↑ 10.1 Residential mortgages* 186,601 169,780 ↑ 9.9 Credit card adv
Slide 20: Securities Investments
Securities Investments Prudent management to optimise mix and return HK$ m 31.12.2012 31.12.2012 31.12.2011 31.12.2011 % %YoY YoY Sovereign 178,520 145,205 ↑ 22.9 Public Sector 41,458 43,252 ↓ 4.1 Corporate entities 64,959 41,576 ↑ 56.2 Banks and other FIs 246,759 195,567 ↑ 26.2 Total 531,696 425,60
Slide 21: Segmental Performance
Segmental Performance Operating Operating Income Income by by Segments Segments HK$ m Personal: Robust growth in 30,846 35,760 mortgages, credit card 843 business, funds and bond 409 9,625 sales 7,376 Corporate: Enhanced service capabilities and product 13,654 innovation drove strong 11,943 grow
Slide 22: Mainland Business
Mainland Business Encouraging growth amid a challenging banking environment Operating Operating Income Income Operating Operating Expenses Expenses HK$ m + 17.9% YoY HK$ m + 19.1% YoY 1,506 1,775 912 1,086 2011 2012 2011 2012 Deposits Deposits from from Customers Customers Gross Gross Advances Advan
Slide 23: Outlook and Strategy
Outlook and Strategy Cp ER a ie (42 AR) A PR ZB) BOC HONG KONG (HOLDINGS) LIMITED
Slide 24: Outlook and Strategy
Outlook and Strategy Balanced strategy for sustainable growth Build on strong franchise to drive business growth Enhance competitiveness and capture opportunities Maintain solid financial position and stringent risk management 23
Slide 25: Reaching New Heights with Balanced Growth - 2012 Annual Results
Reaching New Heights with Balanced Growth 2012 Annual Results 2013.03.26
BOC Hong Kong (Holdings) — FY2012 Earnings Presentation on 6ix