Boc Hong Kong (holdings) Limited · HKEX:2388

Boc Hong Kong (holdings) — H1 2018 Earnings Presentation

22 slides from Boc Hong Kong (holdings)'s earnings presentation, Aug 29, 2018

  1. Slide 1: 2018 Interim Results

    2018 Interim Results 2018.08.29 Mobile access QR code for 1 2018 Interim Results Announcement

  2. Slide 2: Forward-looking Statement Disclaimer and New Reporting Basis in this Presentation

    Forward-looking Statement Disclaimer and New Reporting Basis in this Presentation ► 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 fo

  3. Slide 3: 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 3

  4. Slide 4: Agenda

    Agenda 1 1H2018 Strategy Review 1 2 1 1H2018 Financial Performance 3 2H2018 Outlook and Business Focus 1 4

  5. Slide 5: 1H2018 Strategy Review

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  6. Slide 6: Effective Strategy Implementation: 1H2018 Key Highlights

    Effective Strategy Implementation 1H2018 Key Highlights Sustained growth of profit attributable to equity holders ► Consistently enhanced our profitability with profit attributable to HK$m +17.7% equity holders up 17.7% YoY to HK$17.5bn 17,528 14,897* ► Maintained a market leading position by seizin

  7. Slide 7: Solid Growth in Southeast Asian Business

    Solid Growth in Southeast Asian Business Fully leveraged our competitive advantages in business, products and management, strengthened our management capability as a regional headquarters and stepped up support Thailand Vietnam The for SEA institutions so as to realise integrated development in Phil

  8. Slide 8: Proactive Efforts in Integrated Development for the Greater Bay Area

    Proactive Efforts in Integrated Development for the Greater Bay Area In line with BOC’s strategic plan, BOCHK leverages BOC group’s internationalised and diversified advantages, and fully performs its role as the chair of the integrated development committee, seeking to become the first- choice bank

  9. Slide 9: Continuous Enhancement in Full Service Capabilities

    Continuous Enhancement in Full Service Capabilities Cardholder spending and merchant Expedited development of cash pooling Credit Card acquiring volume up 12.5% and 19.1% and treasury centre businesses. Successfully Cash Management YoY respectively, maintained leading launched global cash management

  10. Slide 10: New Development Underpinned by Fintech

    New Development Underpinned by Fintech Mobile Launched Smart Mobile Banking 3.0 which supports fingerprint authentication, facial recognition Banking and mobile token, resulting in higher service efficiency and better customer experience Mobile Introduced brand new BOC Pay, the first e-wallet in the

  11. Slide 11: 1H2018 Financial Performance

    1H2018 Financial Performance 11

  12. Slide 12: Robust Growth in Profitability

    Robust Growth in Profitability Income statement summary (HK$m) 1H2018 1H2017 Change Solid performance in key financial indicators Net operating income before 27,557 23,815 15.7% 13.76% 14.32% impairment allowances Operating expenses (7,000) (6,238) 12.2% 1.34% 1.27% PPOP 20,557 17,577 17.0% Net char

  13. Slide 13: Sustained Growth in Customer Deposits

    Sustained Growth in Customer Deposits HK$m 06.2018 12.2017 Change Optimised deposit structure HK$m Demand deposits and current accounts 213,583 203,837 4.8% +3.2% 927,089 956,373 Saving deposits 851,691 913,192 -6.7% Time, call and notice deposits 788,306 658,061 19.8% 850,785 +5.8% 899,782 Structur

  14. Slide 14: Solid Growth in Customer Loans

    Solid Growth in Customer Loans HK$m 06.2018 12.2017 Change Loans for use in HK – key growth industries HK$m 06.2018 Loans for use in Hong Kong 810,253 759,038 6.7% 7,483 Stockbrokers +628.6% 12.2017 Industrial, commercial and financial 475,183 436,754 8.8% Financial concerns 18,559 +37.9% Individual

  15. Slide 15: Stable Margin Expansion

    Stable Margin Expansion HK$m 1H2018 1H2017 Change Steady widening of NIM* Net interest income 18,490 17,196 7.5% +10bps Average yield of total interest-earning assets 2.37% 2.24% 13bps 1.56% Balances and placements with banks and 1.46% 1.95% 2.44% -49bps other financial institutions Debt securities

  16. Slide 16: Steady Growth in Fee Income

    Steady Growth in Fee Income HK$m 1H2018 1H2017 Change Significant growth in net commission income related to investment and insurance Net fee and commission income 6,474 5,778 12.0% HK$m +46.0% 2,490 Investment and insurance 2,490 1,705 46.0% • Securities brokerage 1,524 940 62.1% 1,705 • Funds dist

  17. Slide 17: Effective Cost Efficiency Control

    Effective Cost Efficiency Control HK$m 1H2018 1H2017 Change Sensible growth in operating expenses HK$m 314 7,000 Staff costs 4,053 3,698 9.6% 24 69 355 6,238 Premises & equipment expenses 856 832 2.9% Depreciation 996 927 7.4% Others 1,095 781 40.2% Total operating expenses 7,000 6,238 12.2% ► Staff

  18. Slide 18: Solid Performance in Key Risk Indicators

    Solid Performance in Key Risk Indicators HK$m 06.2018 12.2017 Change Asset quality remained sound Total advances to customers 1,230,508 1,146,426 7.3% 0.54% 0.55%* Classified or impaired loan ratio 0.22% 0.18% +0.04ppt 0.18% 0.22% Total loan impairment allowances 5,150 4,106 25.4% Total loan impairm

  19. Slide 19: 2H18 Outlook and Business Focus

    2H18 Outlook and Business Focus 19

  20. Slide 20: Operating Environment Outlook

    Operating Environment Outlook Opportunities Challenges • The Chinese economy will extend its stable • Marked increase in global economic risks arising growth and favourable outlook with economic from trade protectionism, and normalisation in structural adjustments moving in a positive global monetar

  21. Slide 21: Business Focus in 2H2018

    Business Focus in 2H2018 Accelerate the building of a top-class, full-service Strategic goal and internationalised regional bank ► Speed up technology innovation and product R&D to pursue digitalisation ► Remain customer-centric and deepen local market commitment to increase growth quality ► Strive

  22. Slide 22: Q&A Session

    OP SR re (12 AR) APR A BOC HONG KONG (HOLDINGS) LIMITED Q&A Session

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