Dah Sing Financial Holdings Limited · HKEX:440
Dah Sing Financial — FY2021 Earnings Presentation
20 slides from Dah Sing Financial's earnings presentation, Apr 1, 2022
Slide 1: Dah Sing Financial Group 2021 Annual Results
Dah Sing Financial Group 2021 Annual Results 1 April 2022
Slide 2: Performance highlights
Performance highlights • Mild growth in net interest income with improved net interest margin and modest loan growth • Stable fee and commission income • Improved credit quality, with reduction in impaired loan ratio to below 1% • Increase in net profit mainly due to lower impairment charges • Incre
Slide 3: Financial Highlights
Financial Highlights ED ivenhee Ga DAHSING FINANCIAL GROUP
Slide 4: Dah Sing Banking Group (2356)
Dah Sing Banking Group (2356) HK$’ million 2021 2020 Change Net interest income 3,944 3,696 +7% Net fee and commission income 1,197 1,182 +1% Net trading income and other income 243 371 -35% Total operating income 5,384 5,249 +3% Operating expenses (3,021) (2,833) +7% Credit impairment losses (373)
Slide 5: Dah Sing Financial Holdings (0440)
Dah Sing Financial Holdings (0440) HK$’ million 2021 2020 Change Net interest income 3,954 3,719 +6% Net fee and commission income 1,186 1,173 +1% Net trading income, net insurance premium and other operating income net of insurance claims and expenses 536 680 -21% Total operating income net of insu
Slide 6: Dah Sing Banking Group
Dah Sing Banking Group ED ivenhee Ga DAHSING FINANCIAL GROUP
Slide 7: Key return indicators
Key return indicators 8% 6% 5.7% 5.4% 4% 2% 0.6% 0.7% 0% 2020 2021 Return on average total assets (annualised) Return on average shareholders' funds (annualised) 7
Slide 8: Capital adequacy and liquidity
Capital adequacy and liquidity Capital adequacy ratio Liquidity maintenance ratio 20% 17.6% 18.0% 18.1% 50% 3.3% 3.2% 3.4% 40% 15% 0.5% 0.6% 0.5% 30% 47.8% 46.1% 46.9% 10% 14.2% 20% 13.8% 14.2% 5% 10% 0% 0% 31 Dec 20 30 Jun 21 31 Dec 21 31 Dec 20 30 Jun 21 31 Dec 21 CET1 Additional T1 T2 8
Slide 9: Gross advances to customers and trade bills
Gross advances to customers and trade bills 160,000 Growth relative to 143.6 bn 148.6 bn 2020 year-end : 150,000 141.4 bn 5.1% 140,000 Loans for use outside 130,000 HK 24% 25% 120,000 24% 110,000 Trade finance and 9% 8% trade bills 100,000 8% HK$ million 90,000 12% 11% 11% 80,000 Credit card advance
Slide 10: Net interest margin
Net interest margin 1.90% 1.80% 1.74% 1.71% 1.72% 1.70% 1.63% 1.60% 1.50% 1.40% 1.30% 1.20% 2020 average 1H21 2H21 2021 average 10
Slide 11: Income from core businesses
Income from core businesses 3,000 2,721 2,618 2,631 2,663 116 4% 5% 7% 188 7% 126 2,500 183 24% Net trading income 642 556 21% 578 22% 604 23% and other operating 2,000 income HK$ million 1,500 Net fee and commission income 71% 1,981 74% 1,857 1,839 70% 1,963 72% 1,000 Net interest income 500 0 1H20
Slide 12: Credit quality
Credit quality 400 365 350 282 300 256 250 HK$’m 200 Credit 150 117 impairment 100 losses 50 0 1H20 2H20 1H21 2H21 30 Jun 20 31 Dec 20 30 Jun 21 31 Dec 21 0.0% Overdue and rescheduled 0.5% loans ratio Impaired loan 1.0% 0.81% ratio 0.94% 0.93% 0.91%0.96% 0.97% 1.02% 1.14% 1.5% 12
Slide 13: Corporate banking
Corporate banking • Higher net interest income and improved net interest margin • Better profitability due to much improved credit quality and lower impairment charges • Modest loan growth, mainly from syndicated loans, investment and trade loans • Trade volume growth driven by export trade • Contin
Slide 14: Personal banking
Personal banking • Moderate increase in net interest income due mainly to lower funding cost as a result of effective deposit cost management • Modest overall loan growth driven by residential mortgages and personal loans • Improved credit quality and meaningful decline in credit cost • Non-interest
Slide 15: Treasury & Global Markets
Treasury & Global Markets • Lower segmental profit due mainly to softer trading income which more than offset the increase in net interest income • Customer business remained robust, particularly through our retail banking network • Conservative liquidity management - average Liquidity Maintenance R
Slide 16: Overseas banking
Overseas banking Macau: • Higher profit mainly due to write-back of loan impairment provisions • Slight contraction in loan balance due to weak domestic demand and intense competition PRC: • DSB (China): Improved profitability with credit risk closely monitored • BOCQ’s profit contribution was stabl
Slide 17: Dah Sing Financial Group
Dah Sing Financial Group ED ivenhee Ga DAHSING FINANCIAL GROUP
Slide 18: General insurance
General insurance • Modest increase in gross premium income • Lower overall profit due mainly to reduced contribution from investments • The results of our insurance business together with investment returns reported in total comprehensive income was lower mainly due to weaker investment performance
Slide 19: Conclusions
Conclusions ED ivenhee Ga DAHSING FINANCIAL GROUP 19
Slide 20: Conclusions
Conclusions • Improved business performance and profitability, with our core businesses remaining resilient despite a difficult operating environment • Higher net interest income and stable fee income resulting in higher annualised return on equity • Improved asset quality with substantial reduction
Dah Sing Financial Group — FY2021 Earnings Presentation on 6ix