Dah Sing Financial Holdings Limited · HKEX:440
Dah Sing Financial — FY2019 Earnings Presentation
20 slides from Dah Sing Financial's earnings presentation, 2020
Slide 1: Dah Sing Group 2019 Final Results
Dah Sing Group 2019 Final Results Dah Sing Group
Slide 2: Performance highlights
Performance highlights Operating profit from our banking business impacted by lower NIM. Fee income was stable, trading income down Modest volume growth and weaker credit quality, particularly in the second half, leading to higher ECL charges Net profit down 10%, but helped by a much lower imp
Slide 3: Financial Highlights
Financial Highlights Dah Sing Group
Slide 4: Dah Sing Banking Group (2356)
Dah Sing Banking Group (2356) HK$’ million 2019 2018 Change Net interest income 4,074 4,164 -2% Net fee and commission income 1,147 1,161 -1% Net trading income and other income 167 405 -59% Total operating income 5,388 5,730 -6% Operating expenses (2,851) (2,700) +6% Credit impairment losses (356)
Slide 5: Dah Sing Financial Holdings (0440)
Dah Sing Financial Holdings (0440) HK$’ million 2019 2018 Change Net interest income 4,125 4,215 -2% Net fee and commission income 1,136 1,151 -1% Net trading income, net insurance premium and other operating income net of insurance claims and expenses 343 540 -37% Total operating income net of insu
Slide 6: Dah Sing Banking Group
Dah Sing Banking Group Dah Sing Group
Slide 7: Key return indicators
Key return indicators 12% 10% 9.8% 8.5% 8% 6% 4% 2% 1.1% 0.9% 0% 2018 2019 Return on average total assets Return on average shareholders' funds Dah Sing Group 7
Slide 8: Capital adequacy and liquidity
Capital adequacy and liquidity Capital adequacy ratio Liquidity maintenance ratio 20% 18.1% 17.9% 17.9% 50% 4.4% 4.0% 4.0% 40% 15% 0.6% 0.6% 0.5% 30% 45.6% 45.7% 46.4% 10% 20% 13.1% 13.3% 13.4% 5% 10% 0% 0% 31 Dec 18 30 Jun 19 31 Dec 19 31 Dec 18 30 Jun 19 31 Dec 19 CET1 Additional T1 T2 Dah Sing Gr
Slide 9: Gross advances to customers and trade bills
Gross advances to customers and trade bills 150,000 136.6 bn 140.3 bn 5.3% Loans for use 140,000 133.3 bn outside HK 130,000 120,000 26% 26% 24% Trade finance and 110,000 trade bills 100,000 9% 10% 9% 90,000 HK$ million 12% Credit card 80,000 12% 12% advances and other 70,000 loans to individuals 60
Slide 10: Net interest margin
Net interest margin 2.20% 2.01% 2.00% 1.90% 1.87% 1.84% 1.80% 1.60% 1.40% 1.20% 2018 average 1H19 2H19 2019 average Dah Sing Group 10
Slide 11: Income from core businesses
Income from core businesses 3,000 2,880 2,850 149 5% 2,661 2,727 255 9% 124 44 2% 5% Net trading 2,500 income and 617 21% 544 19% 577 22% 570 21% other operating income 2,000 HK$ million 1,500 Net fee and commission income 2,114 73% 2,050 72% 2,041 77% 2,033 75% 1,000 500 Net interest income 0 1H18
Slide 12: Credit quality
Credit quality 300 265 250 195 200 HK$’m 150 Credit 91 impairment 100 38 losses 50 0 1H18 2H18 1H19 2H19 30 Jun 18 31 Dec 18 30 Jun 19 31 Dec 19 0.0% Overdue and rescheduled loans ratio 0.5% Impaired loan ratio 0.64% 0.69% 0.70% 0.75% 0.74% 0.77% 0.81% 0.84% 1.0% Dah Sing Group 12
Slide 13: Commercial banking
Commercial banking Steady NII but softer NIM, with loan growth of 6.5% driven by commercial and corporate loans. Trade finance and bills business dropped ECL mildly increased whilst credit quality under control Treasury and wealth management service fee income growth offset by credit and trade
Slide 14: Personal banking
Personal banking 6.4% deposit growth with focus on funding cost control to manage higher fixed deposit rates Moderate loan growth cushioning impact from lower NIM, led by residential mortgages Bancassurance, FX related and private banking businesses performed well, helping to compensate for lo
Slide 15: Treasury
Treasury Much improved profit with higher NII and trading income Focus on services to customers led to an increase in fee income, particularly FX Conservative liquidity management – average Liquidity Maintenance Ratio at 46.4%, well above statutory requirement Prudent treasury portfolio with
Slide 16: Overseas banking
Overseas banking Macau: Achieved modest loan growth and benign credit quality amid soft credit demand Profit under pressure due to narrower NIM and lower fee income in a difficult market PRC: DSB (China): Decent loan growth, but NIM under pressure. Credit quality was well managed with low impa
Slide 17: Dah Sing Financial Holdings
Dah Sing Financial Holdings Dah Sing Group
Slide 18: Insurance
Insurance Our insurance business had a good year HK$’m Premium income with strong growth in both gross and net 1,000 23% premium income 800 861 600 700 37% Employee compensation, motor (non-taxi) 400 479 and reinsurance inward treaties were key 200 350 premium contributors 0 2018 2019 Claims w
Slide 19: Conclusions
Conclusions Dah Sing Group
Slide 20: Conclusions
Conclusions Moderate balance sheet growth with robust capital and liquidity positions Asset quality generally benign amidst uncertain market conditions despite higher ECL charges Profit dampened due mainly to lower NIM and subdued fee and commission income Lower impairment charge on investme