Boc Hong Kong (holdings) Limited · HKEX:2388
Boc Hong Kong (holdings) — H1 2013 Earnings Presentation
25 slides from Boc Hong Kong (holdings)'s earnings presentation, Aug 29, 2013
Slide 1: 2013 Interim Results
2013 Interim Results 2013.08.29
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 Cp ER a ie (42 AR) A PR ZB) BOC HONG KONG (HOLDINGS) LIMITED
Slide 6: Operating Environment
Operating Environment External environment remained lacklustre, with slowing Hong Kong and China economic growth Low interest rates and intense competition continued to pose challenges for banks Increased RMB business opportunities on further policy relaxation More stringent capital requirem
Slide 7: Performance Overview
Performance Overview Solid performance driven by core businesses Operating profit achieved new high with broad-based income growth Balance between return and risk while continue to manage cost effectively Stringent risk control to maintain benign asset quality Strong financial position to su
Slide 8: Key Financial Highlights
Key Financial Highlights 1H2013 1H2012 % YoY HK$m Net operating income before impairment allowances 19,791 18,096 9.4 Operating profit before impairment allowances 14,099 12,774 10.4 Profit attributable to the equity holders 11,252 11,243 0.1 Earnings per share (HK$) 1.064 1.063 0.1 Dividend per sha
Slide 9: Strong Financial Position
Strong Financial Position Solid Deposit Base Quality Loan Growth Sound Loan Quality HK$ bn +2.9% YTD HK$ bn + 6.7% YTD Classified or Impaired Loan Ratio 1,229 1,264 778 831 0.26% 0.26% 31.12.2012 30.06.2013 31.12.2012 30.06.2013 31.12.2012 30.06.2013 Healthy LDR Stable Liquidity Strong Capital Posit
Slide 10: Financial Results
Financial Results Cp ER a ie (42 AR) A PR ZB) BOC HONG KONG (HOLDINGS) LIMITED
Slide 11: Condensed Income Statement
Condensed Income Statement Solid growth in core income with effective cost management 1H2013 1H2012 % YoY 2H2012 % HoH HK$ m Net interest income 13,331 12,619 5.6 12,089 10.3 Net fee and commission income 4,681 4,033 16.1 3,730 25.5 Other operating income 1,779 1,444 23.2 1,702 4.5 Net operating inc
Slide 12: Net Interest Income
Net Interest Income NIM widened YoY and HoH on improved loan-deposit spread 1H2013 1H2012 % YoY 2H2012 % HoH HK$ m Interest income 18,459 17,772 3.9 17,641 4.6 Interest expense 5,128 5,153 (0.5) 5,552 (7.6) Net interest income 13,331 12,619 5.6 12,089 10.3 Average interest earning assets 1,607,052 1
Slide 13: Non-interest Income
Non-interest Income Broad-based growth in net fee and commission income Other operating income increased driven by the insurance segment HK$ m 1H2013 1H2012 % YoY 2H2012 % HoH Net fee and commission income 4,681 4,033 16.1 3,730 25.5 Fee and commission income Credit cards business 1,734 1,477 17.4 1
Slide 14: Operating Expenses
Operating Expenses Continued to invest in our franchise while ensure cost efficiency Operating Expenses Number of Branches HK$ m + 7.0% YoY 5,692 5,322 904 Others 306 308 891 (269) (269) 810 722 Depreciation 744 31.12.2012 30.06.2013 681 Premises and ( ) - Branches in Hong Kong Equipment Staff Costs
Slide 15: Net Charge of Impairment Allowances
Net Charge of Impairment Allowances Net charge of CA impairment allowances due to loan growth and update of assessment parameters HK$ m 1H2013 1H2012 % YoY 2H2012 % HoH Advances to customers Net charge of allowances before recoveries - individual assessment (82) (5) 1,540.0 (507) (83.8) - collective
Slide 16: Loan Quality
Loan Quality Loan quality remained sound Classified or Impaired Loans HK$ bn +0.41 -0.02 -0.25 -0.07 2.05 2.12 31.12.2012 Downgrade Upgrade Collection Write-off 30.06.2013 15
Slide 17: Condensed Balance Sheet
Condensed Balance Sheet Proactive asset and liability management to drive sustainable growth and profitability HK$ m 30.06.2013 31.12.2012 % Change Cash and balances with banks and other financial institutions 182,450 198,748 (8.2) Placements with banks and other financial institutions 54,511 66,025
Slide 18: Customer Deposits
Customer Deposits Flexible deposit strategy and cautious funding cost control HK$ m 30.06.2013 31.12.2012 % Change Demand deposits and current accounts 99,668 97,295 2.4 Saving deposits 564,485 603,565 (6.5) Time, call and notice deposits 595,603 525,430 13.4 Structured deposits 4,534 2,841 59.6 Tot
Slide 19: Advances to Customers
Advances to Customers Sustained quality loan growth with conscious risk control HK$ m 30.06.2013 31.12.2012 % Change Loans for use in HK - corporate 270,048 252,877 6.8 Loans for use in HK - individual 235,417 227,876 3.3 Residential mortgages* 192,267 186,601 3.0 Credit card advances 10,561 11,534
Slide 20: Securities Investments
Securities Investments Optimise portfolio mix in view of market changes HK$ m 30.06.2013 31.12.2012 % Change Sovereign 91,678 178,520 (48.6) Public Sector 45,756 41,458 10.4 Corporate entities 88,230 64,959 35.8 Banks and other FIs 260,470 246,759 5.6 Total 486,134 531,696 (8.6) Credit rating 6% dis
Slide 21: Operating Income by Segments
Operating Income by Segments HK$ m 18,096 19,791 Personal: Residential 688 mortgages maintained market 570 leadership. Robust growth in 4,449 funds and insurance sales. 5,291 Corporate: Corporate loan recorded healthy growth with 7,771 improved loan pricing 6,647 Treasury: Proactive investment
Slide 22: Mainland Business
Mainland Business Steady development with encouraging growth Operating Income Operating Expenses HK$ m + 18.2% YoY HK$ m + 25.2% YoY 876 1,035 606 484 1H2012 1H2013 1H2012 1H2013 Deposits from Customers Gross Advances to Customers HK$ m + 8.8% YTD HK$ m + 6.8% YTD 59,430 64,649 50,672 54,111 31.12.2
Slide 23: Outlook and Strategy
Outlook and Strategy Cp ER a ie (42 AR) A PR ZB) BOC HONG KONG (HOLDINGS) LIMITED
Slide 24: Outlook and Strategy
Outlook and Strategy Balanced growth strategy to drive core profitability Build on diversified platforms to deliver sustainable growth Capture cross-border and offshore RMB business opportunities with enhanced capabilities Maintain strong financial position and rigorous risk management 23
Slide 25: 2013 Interim Results
2013 Interim Results 2013.08.29
BOC Hong Kong (Holdings) — H1 2013 Earnings Presentation on 6ix