Boc Hong Kong (holdings) Limited · HKEX:2388
Boc Hong Kong (holdings) — FY2015 Earnings Presentation
33 slides from Boc Hong Kong (holdings)'s earnings presentation, Mar 30, 2016
Slide 1: A New Chapter, Our Shared Future: 2015 Annual Results
A New Chapter Our Shared Future 2015 Annual Results 2016.03.30
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 Yue Yi Vice Chairman & Chief Executive Mr Li Jiuzhong Executive Director and 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 Execut
Slide 4: New Reporting Basis in this Presentation
New Reporting Basis in this Presentation Due to the Sale and Purchase Agreement for the disposal of Nanyang Commercial Bank, Limited (“NCB”) signed on December 18, 2015 Operating results of NCB were classified as Discontinued Operations in the P&L Assets and liabilities of NCB reported as Asse
Slide 5: Agenda
Agenda Key Performance Highlights Financial Results Outlook and Strategy 4
Slide 6: Key Performance Highlights
Cp ER a rs (42 AR) ABR ZS) BOC HONG KONG (HOLDINGS) LIMITED
Slide 7: Highly Complex and Challenging Operating Environment
Complex and Challenging Operating Environment Subdued global economic growth with China’s economy under a “new normal” Highly volatile international financial markets Moderating local economic development Challenging and competitive landscape for banking industry 6
Slide 8: Another Year of Record High Performance
Another Year of Record High Performance Profit attributable to the equity Earnings per share and holders of the Company Dividend per share HK$ m + 9.0% YoY HK$ +9.0% / + 9.3% YoY ( ) - Return on average shareholders’ equity Record high profit driven by non-interest income growth through business s
Slide 9: Good Business Momentum and Strong Financial Position
Good Business Momentum and Strong Financial Position Promising Deposit Base Robust Loan Growth Healthy LDR HK$ bn +10.2% YoY HK$ bn + 9.7% YoY Loan-to-deposit Ratio Benign Loan Quality *Adequate Liquidity *Solid Capital Position Total Capital Ratio Classified or Impaired Average value of Liquidity L
Slide 10: Enhancing competitive edge to grasp business opportunities
Enhancing competitive edge to grasp business opportunities Expanded customer base and enhanced customer satisfaction by meeting market demand through innovative new products and services based on our customer-centric strategy Proactively developed businesses and maintained leadership in major bu
Slide 11: Strategic Restructuring for Regional Development
Strategic Restructuring for Regional Development Aligned with the strategic plan of BOC Group and made steady progress in the proposed disposal of NCB and restructuring of ASEAN assets Strengthened service capability by fully leveraging our largest local distribution network, commencing branch t
Slide 12: Financial Results
Financial Results ew ss Cp ER a rs (42 AR) ABR ZS) BOC HONG KONG (HOLDINGS) LIMITED
Slide 13: Condensed Income Statement
Condensed Income Statement Profit attributable to the equity holders reached a record high Restated 2015 % YoY HK$ m 2014 Net interest income 25,739 26,728 (3.7) Net fee and commission income 11,465 9,091 26.1 Other operating income 3,738 2,084 79.4 Net operating income before impairment allowances
Slide 14: Net Interest Income
Net Interest Income Despite net interest margin narrowed, AIEA expanded Restated 2015 % YoY 2014 HK$ m Interest income 38,074 38,693 (1.6) Interest expense 12,335 11,965 3.1 Net interest income 25,739 26,728 (3.7) Average interest earning assets (AIEA) 1,766,079 1,598,555 10.5 Net interest margin (N
Slide 15: Non-interest Income
Non-interest Income Strong growth in non-interest income, with broad-based growth in net fee and commission income HK$ m Restated 2015 % YoY Fee and commission income 2014 Credit card business 3,727 3,610 3.2 Securities brokerage 3,397 2,471 37.5 Loan commissions 3,286 1,890 73.9 Insurance 1,551 1,4
Slide 16: Operating Expenses
Operating Expenses Focused on high cost efficiency while investing in service capabilities and new businesses Operating Expenses Number of Branches HK$ m +10.3% YoY 11,836 10,728 2,100 Others 1,720 1,732 1,604 Depreciation 1,436 Restated 1,371 ( ) - Branches in Hong Kong Premises and Equipment Staff
Slide 17: Loan Quality
Loan Quality Quality of loan portfolio remained solid Classified or impaired loan ratio stayed at a low level of 0.24% Classified or Impaired Loans HK$ bn 16
Slide 18: Net Charge of Impairment Allowances
Net Charge of Impairment Allowances Ensured sufficient provisions based on our prudent policy HK$ m 2015 Restated % YoY 2014 Advances to customers Net charge of allowances before recoveries - individual assessment (590) 77 --- - collective assessment (548) (399) 37.3 Recoveries 156 195 (20.0) Net ch
Slide 19: Condensed Balance Sheet
Condensed Balance Sheet Proactively managed assets and liabilities to enhance profitability Restated 31.12.2015 % Change 31.12.2014 HK$ m 31.12.2014 Cash and balances with banks and other financial institutions 230,730 342,242 (32.6) 398,673 Placements with banks and other financial institutions 64,
Slide 20: Securities Investments
Securities Investments Adjusted portfolio mix in response to market changes Restated HK$ m 31.12.2015 % Change 31.12.2014 Sovereigns 176,498 69,883 152.6 Public Sector entities 38,116 43,037 (11.4) Corporate entities 123,377 100,579 22.7 Banks and other FIs 236,827 226,069 4.8 Others 180 --- --- Tot
Slide 21: Advances to Customers
Advances to Customers Robust loan growth with consistent and stringent lending policy Restated 31.12.2015 % Change 31.12.2014 HK$ m Loans for use in HK - corporate 300,766 252,844 19.0 Loans for use in HK - individual 270,721 249,692 8.4 Residential mortgages* 209,777 193,411 8.5 Credit card advance
Slide 22: Customer Deposits
Customer Deposits Proactive and flexible deposit strategy to support business growth Restated HK$ m 31.12.2015 % Change 31.12.2014 Demand deposits and current accounts 134,069 96,672 38.7 Saving deposits 717,747 621,944 15.4 Time, call and notice deposits 553,173 555,156 (0.4) Structured deposits 2,
Slide 23: Operating Income by Segments
Operating Income by Segments HK$ m Personal: Maintained market leadership in residential mortgages. Strong growth in commission income from investment & insurance businesses Corporate: Deepened cooperation with state-owned enterprises and capitalised on our relationship with leading industry pla
Slide 24: Outlook and Strategy
Outlook and Strategy ew ss Cp ER a rs (42 AR) ABR ZS) BOC HONG KONG (HOLDINGS) LIMITED
Slide 25: Outlook and Strategy
Outlook and Strategy The global recovery remains sluggish with unresolved structural issues and increasing uncertainties Traditional commercial banks face rising challenges from the rapid development of Internet finance Ride on national strategies to achieve sustainable growth New growth dri
Slide 26: Outlook and Strategy
Outlook and Strategy With the Group’s development strategy, we will continue to capture market opportunities, further optimise business strategies and expand business operations in order to cater for the diversified needs of our customers and support the economic development of Hong Kong Corpora
Slide 27: Outlook and Strategy
Outlook and Strategy Eight Business Platforms: Take advantage of the era of pan- asset management to speed up development with an aim to increase their earnings contributions, enhance business structure and optimise income mix Branch network transformation: Enhance cross-channel collaboration to
Slide 28: Outlook and Strategy
Outlook and Strategy Continue to proceed with NCB sale and ASEAN asset acquisition projects in a proactive approach to Southeast Asia market expansion turning a new chapter for regional expansion Further refine and improve the professionalism and effectiveness of our risk management, internal co
Slide 29: Appendices
Appendices © SB 78 (12H) AR AS BOC HONG KONG (HOLDINGS) LIMITED.
Slide 30: 2015 Condensed Income Statement - reconciliation
2015 Condensed Income Statement - reconciliation New Old Discontinued HK$ m reporting operations reporting basis basis Net interest income 25,739 4,720 30,459 Net fee and commission income 11,465 1,116 12,581 Other operating income 3,738 321 4,059 Net operating income before impairment allowances 40
Slide 31: 2015 Condensed Balance Sheet - reconciliation
2015 Condensed Balance Sheet - reconciliation New Old Discontinued reporting reporting HK$ m operations basis basis Cash and balances with banks and other financial institutions 230,730 53,124 283,854 Placements with banks and other financial institutions 64,208 7,057 71,265 Securities investments 5
Slide 32: Key Financial Highlights (Incl. Discontinued Operations)
Key Financial Highlights (Incl. Discontinued Operations) HK$m 2015 2014 % YoY Net operating income before impairment allowances 47,099 44,282 6.4 Deposits from customers 1,622,871 1,483,224 9.4 Advances to customers 1,046,480 960,989 8.9 Average interest earning assets 2,038,014 1,860,620 9.5 ROE 14
Slide 33: A New Chapter, Our Shared Future: 2015 Annual Results
A New Chapter Our Shared Future 2015 Annual Results 2016.03.30
BOC Hong Kong (Holdings) — FY2015 Earnings Presentation on 6ix