Boc Hong Kong (holdings) Limited · HKEX:2388
Boc Hong Kong (holdings) — H1 2015 Earnings Presentation
28 slides from Boc Hong Kong (holdings)'s earnings presentation, Aug 28, 2015
Slide 1: 2015 Interim Results
2015 Interim Results 2015.08.28
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 Madam Sui Yang Chief Financial Officer Mrs Ann Kung Deputy Chief Executive 2
Slide 4: Agenda
Agenda Key Performance Highlights Financial Results Outlook and Strategy 3
Slide 5: Key Performance Highlights
Cp ER a rs (42 AR) ABR ZS) BOC HONG KONG (HOLDINGS) LIMITED
Slide 6: Operating Environment
Operating Environment Growth in major economies remained modest Local economic development supported by the HKSAR government Upbeat investment sentiment amid intense market competition China’s continuous reforms opened up new opportunities 5
Slide 7: Another Year of Record High Performance
Another Year of Record High Performance Profit attributable to the equity Earnings per share and Net operating income* holders of the Company Dividend per share HK$ m +9.4% YoY HK$ m + 10.8% YoY HK$ + 10.8% YoY / -- 21,649 23,688 12,083 13,387 (14.75%) (14.78%) 1H2014 1H2015 1H2014 1H2015 *Before im
Slide 8: Good Business Momentum and Strong Financial Position
Good Business Momentum and Strong Financial Position Strong Deposit Base Steady Loan Growth Healthy LDR HK$ bn +8.9% YTD HK$ bn + 7.3% YTD Loan-to-deposit Ratio Improved Loan Quality Adequate Liquidity Solid Capital Position Total Capital Ratio Classified or Impaired Average value of Liquidity Loan
Slide 9: Enhancing our Competitive Edge, Capturing Emerging Growth Opportunities
Enhancing our Competitive Edge, Capturing Emerging Growth Opportunities Promoted wealth management business to achieve remarkable growth in net fee income Encouraging achievements in major business platforms Leveraged on RMB competitive edge to reinforce our leading position in cross-border bu
Slide 10: Strategic Restructuring for our Long-term Development
Strategic Restructuring for our Long-term Development Implementing strategic transformation in Hong Kong and the ASEAN region Captured opportunities from major national strategic initiatives, including “One Belt, One Road”, RMB internationalisation and Mainland enterprises going global Targete
Slide 11: Financial Results
Financial Results ew ss Cp ER a rs (42 AR) ABR ZS) BOC HONG KONG (HOLDINGS) LIMITED
Slide 12: Condensed Income Statement
Condensed Income Statement Strong growth in non-interest income 1H2015 1H2014 % YoY 2H2014 % HoH HK$ m Net interest income 15,672 15,656 0.1 16,263 (3.6) Net fee and commission income 6,325 4,815 31.4 5,307 19.2 Other operating income 1,691 1,178 43.5 1,063 59.1 Net operating income before impairmen
Slide 13: Net Interest Income
Net Interest Income Expanded AIEA with narrowed net interest margin 1H2015 1H2014 % YoY 2H2014 % HoH HK$ m Interest income 23,860 23,304 2.4 24,648 (3.2) Interest expense 8,188 7,648 7.1 8,385 (2.3) Net interest income 15,672 15,656 0.1 16,263 (3.6) Average interest earning assets (AIEA) 1,993,548 1
Slide 14: Non-interest Income
Non-interest Income Robust and broad-based growth in net fee and commission income Other operating income underpinned by higher insurance income and net gain on other financial assets HK$ m 1H2015 1H2014 % YoY 2H2014 % HoH Fee and commission income Credit card business 1,849 1,792 3.2 1,881 (1.7) Se
Slide 15: Operating Expenses
Operating Expenses Maintained disciplined cost control while investing in new businesses Operating Expenses Number of Branches HK$ m +5.8% YoY 6,576 6,216 1,013 1,081 Others 961 900 Depreciation 814 847 Premises and Equipment ( ) - Branches in Hong Kong Staff Costs Staff Number 3,489 3,687 1H2014 1H
Slide 16: Net Charge of Impairment Allowances
Net Charge of Impairment Allowances Net charge of IA impairment allowances increased with higher net charge from Mainland business HK$ m 1H2015 1H2014 % YoY 2H2014 % HoH Advances to customers Net charge of allowances before recoveries - individual assessment (812) (152) 434.2 (596) 36.2 - collective
Slide 17: Loan Quality
Loan Quality Quality of overall loan portfolio remained sound Classified or impaired loan ratio stayed at a low level of 0.27% Classified or Impaired Loans HK$ bn 16
Slide 18: Condensed Balance Sheet
Condensed Balance Sheet Continued to optimise asset and liability mix to enhance return HK$ m 30.06.2015 31.12.2014 % Change Cash and balances with banks and other financial institutions 329,274 398,673 (17.4) Placements with banks and other financial institutions 50,867 37,436 35.9 Securities inves
Slide 19: Customer Deposits
Customer Deposits Proactive and flexible deposit strategy to support business growth HK$ m 30.06.2015 31.12.2014 % Change Demand deposits and current accounts 166,589 116,361 43.2 Saving deposits 691,527 672,826 2.8 Time, call and notice deposits 754,211 690,922 9.2 Structured deposits 2,672 3,115 (
Slide 20: Advances to Customers
Advances to Customers Steady loan growth with consistent lending policy HK$ m 30.06.2015 31.12.2014 % Change Loans for use in HK - corporate 347,408 308,141 12.7 Loans for use in HK - individual 277,963 267,260 4.0 Residential mortgages* 213,002 203,744 4.5 Credit card advances 12,639 13,021 (2.9) T
Slide 21: Securities Investments
Securities Investments Adjusted portfolio mix to meet market changes HK$ m 30.06.2015 31.12.2014 % Change Sovereigns 181,746 89,543 103.0 Public Sector entities 42,282 43,402 (2.6) Corporate entities 143,829 111,527 29.0 Banks and other FIs 274,348 248,348 10.5 Total 642,205 492,820 30.3 Credit rati
Slide 22: Operating Income by Segments
Operating Income by Segments HK$ m Personal: Maintained market leadership in residential mortgages. Encouraging growth in commission income from investment & insurance businesses Corporate: Deepened collaboration with BOC to expand cross-border banking services. Treasury: Proactive investment
Slide 23: Mainland Business
Mainland Business Adversely affected by economic slowdown and weakening credit conditions Operating Income Operating Expenses HK$ m - 14.0% YoY HK$ m - 5.7% YoY 1,406 1,209 717 676 1H2014 1H2015 1H2014 1H2015 Deposits from Customers Gross Advances to Customers HK$ m + 2.6% YTD HK$ m + 6.8% YTD 66,17
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 Divergent global recovery across different economies Capture rising opportunities to achieve solid returns Large infrastructure investments in the Asia-Pacific region “One Belt, One Road” potential with Hong Kong serving as a “super connector” Opening up of capital acc
Slide 26: Outlook and Strategy
Outlook and Strategy Pave way for the inclusion of RMB into the Special Drawing Rights and solidify our position as the premier bank in RMB business Continue to optimise business structure and broaden product spectrum Further expand customer coverage and leverage BOC Group’s global presence to
Slide 27: Outlook and Strategy
Outlook and Strategy Strategic transformation Encouraging progress towards the restructuring of ASEAN assets Develop new structural framework and mechanisms to embrace strategic changes Further expand our market reach, product suite and service offerings Transform from a local bank into a
Slide 28: 2015 Interim Results
2015 Interim Results 2015.08.28
BOC Hong Kong (Holdings) — H1 2015 Earnings Presentation on 6ix