Boc Hong Kong (holdings) Limited · HKEX:2388
Boc Hong Kong (holdings) — FY2017 Earnings Presentation
23 slides from Boc Hong Kong (holdings)'s earnings presentation, Mar 29, 2018
Slide 1: A Century of Heritage, A New Era of Excellence: 2017 Annual Results
A Century of Heritage A New Era of Excellence 2017 Annual Results 2018.03.29 Mobile access QR code for 1 2017 Annual Results Announcement
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, proje
Slide 3: New Reporting Basis in this Presentation
New Reporting Basis in this Presentation ► Due to the completion of the acquisitions of Bank of China (Thai) Public Company Limited (“BOC Thailand”) and Indonesia Business and Cambodia Business from BOC on 9 January 2017, 10 July 2017 and 6 November 2017 respectively, the Group has applied the merge
Slide 4: Management Team
Management Team Mr GAO Yingxin Vice Chairman & Chief Executive Mr LI Jiuzhong Executive Director and Chief Risk Officer Mr YUAN Shu Deputy Chief Executive Mr ZHONG Xiangqun Chief Operating Officer Mdm SUI Yang Chief Financial Officer Mrs Ann KUNG Deputy Chief Executive 4
Slide 5: Agenda
Agenda 1 2017 Strategy Review 1 2 1 2017 Financial Performance 3 2018 Outlook and Business Focus 1 5
Slide 6: 2017 Strategy Review
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Slide 7: Effective Strategy Implementation: 2017 Key Highlights
Effective Strategy Implementation 2017 Key Highlights Record high profit since IPO ► Significantly enhanced our profitability with profit attributable to HK$m Up 28,481 24,574 15.9% equity holders up 15.9% YoY to HK$28.5bn, setting another record post-IPO high ► Deepened our transformation into an i
Slide 8: Smooth Business Development in Southeast Asia
Smooth Business Development in Southeast Asia Successfully disposed of our stake in Chiyu Bank and acquired BOC Thailand, Organisational Jakarta Branch and Phnom Penh Branch, followed by the acquisitions of Manila Integration Branch and Ho Chi Minh City Branch in early 2018 Achieved collaborative sy
Slide 9: Extended Leading Position in RMB Business
Extended Leading Position in RMB Business ► Maintained our distinguished and leading position in RMB business. Our continually upgraded RMB RTGS system handled a total clearing volume of RMB213tr in 2017, representing a YoY growth of 5.6% and accounting for 76% of the total offshore market ► Fully l
Slide 10: Enhancing Integrated Services Capabilities
Enhancing Integrated Services Capabilities Capitalised on local and cross-border Promoted mobile technology with a focus Credit Card opportunities. Enhanced competitiveness Cash Management on e-payment services, and maintained a of the cash pooling and corporate treasury BOCCC leading position in Un
Slide 11: Leadership in Fintech Innovation
Leadership in Fintech Innovation Blockchain technology used in over 21,000 mortgage Fintech strategy Blockchain valuation cases, accounting for 85% of total new cases, trial application in trade finance also successfully completed Finger vein authentication service now available at all Biometric bra
Slide 12: 2017 Financial Performance
2017 Financial Performance 12
Slide 13: Significant Increase in Profitability
Significant Increase in Profitability Income statement summary (HK$m) 2017 2016 change Solid performance in key financial indicators Net operating income before 48,769 42,595 14.5% impairment allowances 13.49% 12.19% Operating expenses (13,703) (12,512) 9.5% PPOP 35,066 30,083 16.6% 1.14% 1.13% Net
Slide 14: Rapid Growth in Customer Deposits
Rapid Growth in Customer Deposits HK$m 2017 2016 change Optimised customer deposit structure Demand deposits and current accounts 203,831 173,988 17.2% HK$m Up 12.9% 924,225 818,468 Saving deposits 910,184 805,831 12.9% Up 20.6% Time, call and notice deposits 657,498 540,048 21.7% 704,824 850,072 St
Slide 15: Solid Growth in Customer Loans
Solid Growth in Customer Loans HK$m 2017 2016 Change Corporate loans for use in HK – key growth industries HK$m 2017 Loans for use in Hong Kong 759,038 664,030 14.3% 23,900 2016 Information technology +33.2% Industrial, commercial and financial 436,754 375,506 16.3% 61,786 Transport & transport equi
Slide 16: Stable Margin Expansion
Stable Margin Expansion HK$m 2017 2016 Change Steady widening of NIM* Net interest income 34,708 26,024 33.4% Average yield of total interest-earning assets 2.21% 1.88% 33bps Up 5bps Balances and placements with banks and 2.18% 1.36% 82bps 1.44% other financial institutions 1.39% Debt securities inv
Slide 17: Steady Growth in Fee Income
Steady Growth in Fee Income HK$m 2017 2016 Change Significant growth in investment and insurance related commission income Net fee and commission income 11,516 10,684 7.8% Up Investment and insurance 4,096 3,360 21.9% HK$m 21.9% 4,096 3,360 • Securities brokerage 2,341 1,738 34.7% • Funds distributi
Slide 18: Favorable Cost Efficiency Control
Favorable Cost Efficiency Control HK$m 2017 2016 Change Sensible increase in operating expenses HK$m 113 144 60 Staff costs 7,813 6,939 12.6% 874 13,703 12,512 Premises & equipment expenses 1,704 1,591 7.1% Depreciation 1,949 1,805 8.0% Others 2,237 2,177 2.8% Total operating expenses 13,703 12,512
Slide 19: Stable Key Risk Indicators
Stable Key Risk Indicators HK$m 2017 2016 Change Asset quality remained sound 0.72% Total advances to customers 1,144,459 988,193 15.8% 0.54% Classified or impaired loans 2,079 2,282 -8.9% 0.23% 0.18% Classified or impaired loan ratio 0.18% 0.23% -0.05 ppt Total impairment allowances 4,084 3,429 19.
Slide 20: 2018 Outlook and Business Focus
2018 Outlook and Business Focus 20
Slide 21: Operating Environment Outlook: Opportunities and Challenges
Operating Environment Outlook Opportunities Challenges • Enormous opportunities for BOCHK’s • Uncertainties will remain in the global rapid transformation are emerging from economy, including US’s rate hikes and tax China’s push for a new pattern of all-round reform, trade protectionalism, Brexit, a
Slide 22: Business Focus in 2018
Business Focus in 2018 To build a top-class, full-service and internationalised Strategic Target regional bank by providing comprehensive services through digitalisation and globalisation ► Drive our regional expansion by expediting integration of Southeast Asian institutions ► Push forward digitali
Slide 23: Q&A Session
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