Boc Hong Kong (holdings) Limited · HKEX:2388
Boc Hong Kong (holdings) — H1 2014 Earnings Presentation
25 slides from Boc Hong Kong (holdings)'s earnings presentation, Aug 19, 2014
Slide 1: 2014 Interim Results
2014 Interim Results 2014.08.19
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 Jason Yeung Deputy Chief Executive Mr Huang Hong 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 a ss Cp ER a rs (42 AR) ABR ZS) BOC HONG KONG (HOLDINGS) LIMITED
Slide 6: Operating Environment
Operating Environment External economic environment witnessed mixed growth trajectory Local economic growth faced headwinds amid weak external demand and slower private consumption Banks faced challenges from keen competition and subdued property market RMB internationalisation continued to
Slide 7: Performance Overview
Performance Overview Solid performance driven by core businesses Sustainable growth with improved core income Proactive capital, liquidity and risk management to support long-term development Reinforced market leadership in RMB business capitalising on enhanced service platforms Deepened col
Slide 8: Key Financial Highlights
Key Financial Highlights 1H2014 1H2013 % YoY HK$m Net operating income before impairment allowances 21,649 19,791 9.4 Operating profit before impairment allowances 15,433 14,099 9.5 Profit attributable to the equity holders 12,083 11,252 7.4 EPS (HK$) 1.143 1.064 7.4 DPS (HK$) 0.545 0.545 --- ROE 14
Slide 9: Strong Financial Position
Strong Financial Position Strong Deposit Base Sound Loan Growth Benign Loan Quality HK$ bn +8.5% YTD HK$ bn + 10.5% YTD Classified or Impaired Loan Ratio Healthy LDR Stable Liquidity Enhanced Capital Position Loan-to-deposit Ratio Average Liquidity Ratio Total Capital Ratio 8
Slide 10: Financial Results
Financial Results a ss Cp ER a rs (42 AR) ABR ZS) BOC HONG KONG (HOLDINGS) LIMITED
Slide 11: Condensed Income Statement
Condensed Income Statement Sustainable growth in core income and profits 1H2014 1H2013 % YoY 2H2013 % HoH HK$ m Net interest income 15,656 13,331 17.4 14,585 7.3 Net fee and commission income 4,815 4,681 2.9 4,284 12.4 Other operating income 1,178 1,779 (33.8) 1,653 (28.7) Net operating income befor
Slide 12: Net Interest Income
Net Interest Income Strong net interest income growth on higher AIEA and NIM expansion 1H2014 1H2013 % YoY 2H2013 % HoH HK$ m Interest income 23,304 18,459 26.2 20,920 11.4 Interest expense 7,648 5,128 49.1 6,335 20.7 Net interest income 15,656 13,331 17.4 14,585 7.3 Average interest earning assets
Slide 13: Non-interest Income
Non-interest Income Moderate growth in net fee and commission income Other operating income decreased due to lower net trading gain and insurance segment HK$ m 1H2014 1H2013 % YoY 2H2013 % HoH Fee and commission income Credit card business 1,792 1,734 3.3 1,782 0.6 Securities brokerage 1,180 1,224 (
Slide 14: Operating Expenses
Operating Expenses Continuous investment in service capabilities and new business platforms while ensuring cost efficiency Operating Expenses Number of Branches HK$ m +9.2% YoY 6,216 5,692 1,013 904 Others 900 810 Depreciation 814 744 Premises and Equipment ( ) - Branches in Hong Kong Staff Costs St
Slide 15: Net Charge of Impairment Allowances
Net Charge of Impairment Allowances Net charge of impairment allowances increased mildly HK$ m 1H2014 1H2013 % YoY 2H2013 % HoH Advances to customers Net charge of allowances before recoveries - individual assessment (152) (82) 85.4 (231) (34.2) - collective assessment (326) (476) (31.5) (229) 42.4
Slide 16: Loan Quality
Loan Quality Quality of overall loan portfolio remained sound Classified or impaired loan ratio stayed at a low level of 0.31% Classified or Impaired Loans HK$ bn 15
Slide 17: Condensed Balance Sheet
Condensed Balance Sheet Optimised asset mix to drive growth and profitability HK$ m 30.06.2014 31.12.2013 % Change Cash and balances with banks and other financial institutions 340,517 353,741 (3.7) Placements with banks and other financial institutions 33,496 46,694 (28.3) Securities investments 46
Slide 18: Customer Deposits
Customer Deposits Effective deposit strategy to support lending business HK$ m 30.06.2014 31.12.2013 % Change Demand deposits and current accounts 103,033 104,784 (1.7) Saving deposits 621,513 636,137 (2.3) Time, call and notice deposits 711,816 583,227 22.0 Structured deposits 4,014 3,832 4.7 Total
Slide 19: Advances to Customers
Advances to Customers Quality loan growth with stringent risk control HK$ m 30.06.2014 31.12.2013 % Change Loans for use in HK - corporate 310,341 267,632 16.0 Loans for use in HK - individual 252,077 240,339 4.9 Residential mortgages* 193,775 190,031 2.0 Credit card advances 11,845 12,223 (3.1) Tra
Slide 20: Securities Investments
Securities Investments Optimised portfolio mix to maximise return while staying attuned to risk HK$ m 30.06.2014 31.12.2013 % Change Sovereign 87,475 73,344 19.3 Public Sector 43,146 46,601 (7.4) Corporate entities 92,350 93,118 (0.8) Banks and other FIs 243,265 271,150 (10.3) Total 466,236 484,213
Slide 21: Operating Income by Segments
Operating Income by Segments HK$ m Personal: Residential mortgages maintained market leadership. Encouraging growth in funds distribution Corporate: Quality loan growth with further enhancement in service capabilities Treasury: Proactive investment strategy and good growth in RMB FX-related bu
Slide 22: Mainland Business
Mainland Business Satisfactory growth amid a challenging operating environment Operating Income Operating Expenses HK$ m + 35.8% YoY HK$ m + 18.3% YoY Deposits from Customers Gross Advances to Customers HK$ m + 0.2% YTD HK$ m + 4.5% YTD 0.61% 1.58% 21 Classified or Impaired Loan Ratio
Slide 23: Outlook and Strategy
Outlook and Strategy a ss Cp ER a rs (42 AR) ABR ZS) BOC HONG KONG (HOLDINGS) LIMITED
Slide 24: Outlook and Strategy
Outlook and Strategy Enhanced competitiveness to capture business opportunities Stay vigilant as uncertainties still exist amid the challenging operating environment Comprehensive collaboration with BOC to further strengthen synergies within the BOC Group Maintain strong financial position and
Slide 25: 2014 Interim Results
2014 Interim Results 2014.08.19
BOC Hong Kong (Holdings) — H1 2014 Earnings Presentation on 6ix