Dah Sing Financial Holdings Limited · HKEX:440
Dah Sing Financial — FY2016 Earnings Presentation
22 slides from Dah Sing Financial's earnings presentation, Mar 22, 2017
Slide 1: Dah Sing Group 2016 Final Results
Dah Sing Group 2016 Final Results Dah Sing Group
Slide 2: Performance highlights
Performance highlights Overall, a steady year in 2016 Growth in net interest income with better NIM and higher average interest earning asset balances offset by lower fee and trading income Operating profit steady against 2015 Credit cost gradually improving, with 2H16 lower than 1H16, but o
Slide 3: Financial Highlights
Financial Highlights Dah Sing Group
Slide 4: Dah Sing Banking Group (2356)
Dah Sing Banking Group (2356) HK$’ million 2016 2015 Change Net interest income 3,638 3,337 +9% Net fee and commission income 836 910 -8% Net trading income and other income 247 341 -27% Total operating income 4,720 4,587 +3% Operating expenses (2,399) (2,240) +7% Operating profit before impairment
Slide 5: Dah Sing Financial Holdings (0440)
Dah Sing Financial Holdings (0440) HK$’ million 2016 2015 Change (restated) Net interest income 3,657 3,353 +9% Net fee and commission income 832 907 -8% Net trading income and other operating income 268 330 -19% Net insurance premium and other income net of insurance claims and expenses 99 98 +1% T
Slide 6: Dah Sing Banking Group
Dah Sing Banking Group Dah Sing Group
Slide 7: Key return indicators
Key return indicators 12% 10.6% 10% 9.7% 8% 6% 4% 2% 1.2% 1.1% 0% 2015 2016 Return on average total assets Return on average shareholders' funds Dah Sing Group 7
Slide 8: Capital adequacy and loan to deposit ratio
Capital adequacy and loan to deposit ratio Capital adequacy ratio Loan to deposit ratio (excl. trade bills but incl. CDs) 20% 16.7% 16.7% 18.3% 5.6% 70% 15% 4.5% 4.3% 10% 60% 69.8% 70.9% 70.8% 12.2% 12.4% 12.7% 5% 0% 50% 31 Dec 15 30 Jun 16 31 Dec 16 31 Dec 15 30 Jun 16 31 Dec 16 CET1/Tier 1 Tier 2
Slide 9: Gross advances to customers and trade bills
Gross advances to customers and trade bills 130,000 Loans for use outside 116.1 bn 117.4 bn 118.0 bn 120,000 HK 110,000 25% 24% 100,000 25% Trade finance and trade bills 90,000 10% 80,000 11% 12% HK$ million 70,000 Credit card advances 13% 12% 12% and other loans to 60,000 individuals 50,000 17% 19%
Slide 10: Improving net interest margin
Improving net interest margin 2.20% 2.01% 2.00% 1.98% 1.94% 1.83% 1.80% 1.60% 1.40% 1.20% 2015 average 1H16 2H16 2016 average Dah Sing Group 10
Slide 11: Income from core businesses
Income from core businesses 2,600 2,455 2,400 2,325 2,262 2,265 150 6% 2,200 210 9% 131 6% 97 4% Net trading 437 18% income and 2,000 other operating 388 17% 399 18% 1,800 522 22% income 1,600 HK$ million 1,400 Net fee and 1,200 commission income 1,000 1,743 1,594 69% 77% 1,769 78% 1,869 76% 800 600
Slide 12: Credit quality
Credit quality 400 344 303 300 220 HK$’m 193 Impairment 200 losses and other credit 100 provisions 0 1H15 2H15 1H16 2H16 30 Jun 15 31 Dec 15 30 Jun 16 31 Dec 16 0.0% Overdue and rescheduled 0.5% assets ratio 0.51% 0.64% 0.75% Impaired loan 1.0% 0.86% ratio 1.03% 1.05% 1.20% 1.5% 1.31% Dah Sing Group
Slide 13: Commercial banking
Commercial banking Higher net interest income and improved NIM Improved transactional capability and deposit franchise Lower non-interest income due to unfavorable market conditions Modest growth in commercial loans and trade loans but substantial reduction in cross-border trade bills Impr
Slide 14: Personal banking
Personal banking 6% higher divisional profit with modest growth of residential mortgages and unsecured personal loans Lower average funding cost with effective deposit cost management Strong recovery of wealth management business in 2H16; steady full year growth in bancassurance income Credi
Slide 15: Treasury
Treasury Net interest income grew by about 13% Prudent treasury portfolio with high average credit rating and relatively short duration to manage credit and interest rate risk Conservative liquidity management; average Liquidity Maintenance Ratio of above 40% which was well above statutory req
Slide 16: Overseas banking
Overseas banking Macau: Growth in net interest income with stable NIM Steady loan growth led by residential mortgage business Consistently benign credit quality PRC: Cautious credit risk control leading to better credit performance in Mainland business despite difficult market conditions B
Slide 17: Dah Sing Financial Holdings
Dah Sing Financial Holdings Dah Sing Group
Slide 18: Insurance Group – financial highlights
Insurance Group – financial highlights HK$’ million 2016 2015 Change Net premium income 1,914 1,892 +1% Investment income 590 23 +2,465% Increase in value of in-force 147 149 -1% Other income 30 36 -17% Total income 2,681 2,100 +28% Claims (1,042) (892) +17% Commission and other expenses (503) (476)
Slide 19: Investment portfolio and net worth of insurance group
Investment portfolio and net worth of insurance group 18 16 15.10 15.03 13.83 14 12 Size of investment HK$ billion portfolio 10 8 6 4.96 4.41 4.54 Net worth (including VoIF) 4 2 0 31 Dec 15 30 Jun 16 31 Dec 16 Dah Sing Group 19
Slide 20: Key return indicators
Key return indicators 12% 9.9% 10% 9.0% 8% 6% 4% 2% 0.9% 0.9% 0% 2015 (restated) 2016 Return on average total assets Return on average shareholders' funds Dah Sing Group 20
Slide 21: Conclusions
Conclusions Dah Sing Group
Slide 22: Conclusions
Conclusions Steady performance from both DSFH and DSBG for 2016 Stable core operating profit before impairment but slightly lower profit attributable to shareholders Stabilizing credit quality trend in 2H16; risk under control Higher capital adequacy; healthy liquidity position Dah Sing Grou
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