Boc Hong Kong (holdings) Limited · HKEX:2388
Boc Hong Kong (holdings) — H1 2016 Earnings Presentation
30 slides from Boc Hong Kong (holdings)'s earnings presentation, Aug 30, 2016
Slide 1: A New Chapter, Our Shared Future
Mobile access QR code for 2016 Interim Results Announcement A New Chapter, Our Shared Future 2016 Interim Results August 30, 2016
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 Mr. Yuan Shu Deputy Chief Executive Mr. Zhong Xiangqun Chief Operating Officer Mdm. Sui Yang Chief Financial Officer Mrs. Ann Kung Deputy Chief
Slide 4: Agenda
Agenda 1 Strategy Review 1H16 1 2 Financial Performance 1H16 1 3 Outlook and Business Focus in 2H16 1 3
Slide 5: Strategy Review 1H16
Strategy Review 1H16 ew ‘sy Cp ER a rs (42 AR) ABR ZS) BOC HONG KONG (HOLDINGS) LIMITED
Slide 6: Record High Earnings by Capturing Market Opportunities
1 Record High Earnings by Capturing Market Opportunities Sold NCB for HK$68bn with gains of HK$30bn YoY Growth of Attributable Profit Leads Peers Significant Improvement on Capital Ratios 219% 23.30% 17.86% 18.63% 12.89% 2015.12 2016.06 Total capital ratio Tier 1 capital ratio BOCHK Peer 1 Peer 2 Pe
Slide 7: Initial Success in Regional Expansion Driven by OBOR
2 Initial Success in Regional Expansion Driven by OBOR Continuously evaluating the Progress in 30 Jun: signed agreements potential acquisition of BOC 19 Apr: Announced for acquisition of BOC regional Cambodia, Indonesia, approval for Brunei branch Thailand and Malaysia expansion Philippines and Viet
Slide 8: Outperforming Loan and Deposit Growth due to Customer Expansion
3 Outperforming Loan and Deposit Growth due to Customer Expansion Customer Loan Balance Customer Deposit Balance HK$ bn YTD growth HK$ bn YTD Growth 1,407.6 1,474.3 989.2 890.2 11.1% 13.3% 13.1% 12.8% 11.8% 4.7% 2.2% 2.8% 2015.12 2016.06 2015.12 2016.06 Market Leader Ranked 1st in New Mortgage in Ne
Slide 9: Branch Transformation to Improve Local Focus and Sales Capability
4 Branch Transformation to Improve Local Focus and Sales Capability Ambitiously grow SME business Expedite the development of WM/ 196 branches mid-to-high end customer businesses all over Hong Kong Program Targets Promote the Enhance service development of quality and profitability omni-channel of l
Slide 10: Steady Growth Supported by Eight Business Platforms
5 Steady Growth Supported by Eight Business Platforms Satisfactory growth Credit card in merchant acquiring Established BOCCI business volume: market-based Securities up 9.3% YoY structure & professional & Futures Private sales team Po Sang Futures No. of customers up Banking 19% YTD; average BOCHK
Slide 11: New Competitive Edge Formed by Innovative FINTECH Development
6 New Competitive Edge Formed by Innovative FINTECH Development Pioneer in providing stock info service online on A shares of Shanghai and Shenzhen stock exchanges 1st local bank to provide banking services on e-Cheques Services with comprehensive features the WeChat platform Convenient payment serv
Slide 12: Enhance Overall Risk Management and Control Effectiveness
7 Enhance Overall Risk Management and Control Effectiveness Stable Asset Quality Well-Managed Credit Cost Classified or impaired loan ratio 0.12% 0.78%* 0.11% 0.70% 0.24% 0.25% 2015.12 2016.06 1H2015 1H2016 * Market data as of March 2016 Remark: loan impairment allowances/average customer loan balan
Slide 13: Financial Performance 1H16
Financial Performance 1H16 ew ss Cp ER a rs (42 AR) ABR ZS) BOC HONG KONG (HOLDINGS) LIMITED
Slide 14: Strong Profit Growth with Enhanced Capital Strength
Strong Profit Growth with Enhanced Capital Strength +219.2%YoY / +7.8%YoY on a comparable basis* 30.06.2016 YTD HK$ m CET1 capital ratio 18.58% +5.75pp Tier 1 capital ratio 18.63% +5.74pp Total capital ratio 23.30% +5.44pp First half Profit reached HK$ 42,731million ROE rose to 25.9% Gain of H
Slide 15: Loan Growth Outpaced Market by Capitalising on Market Opportunities
Loan Growth Outpaced Market by Capitalising on Market Opportunities Asset growth compensated for the BOCHK growth:11.1% impact from disposal of NCB vs market: 2.2% HK$ trillion HK$ bn 2.36 -0.3 +0.3 2.36 14
Slide 16: Improved Deposit Structure with Higher CASA Mix
Improved Deposit Structure with Higher CASA Mix BOCHK growth:4.7% CASA mix enhanced vs market: 2.8% by 3.4pp HK$ bn 15
Slide 17: Alleviated Sequential NIM Decline with Quick Market Responses
Alleviated Sequential NIM Decline with Quick Market Responses HK$ m NII HK$ bn NIM AIEA 16
Slide 18: Captured Market Opportunities to Enhance Non-interest Income Ratio
Captured Market Opportunities to Enhance Non-interest Income Ratio HK$ m Ratio rose 5.4pp to 41% Note: Others including net gain/(loss) on financial instruments designated at fair value through profit or loss, net gain on other financial assets, other operating income, net insurance premium income a
Slide 19: Strengthened Resources Allocation with Stable CIR
Strengthened Resources Allocation with Stable CIR HK$ m +5.8% 18
Slide 20: Prudent Provisioning with Solid Asset Quality
Prudent Provisioning with Solid Asset Quality Market Average Restated %YoY 1H2016 0.78%* HK$ m 1H2015 0.70% Individual assessment (185) (239) (22.6) Collective assessment (415) (314) 32.2 Recoveries 56 88 (36.4) Net charge of loan impairment (544) (465) 17.0 allowances * Market data as of 03.2016 19
Slide 21: Outlook and Business Focus in 2H16
Outlook and Business Focus in 2H16
Slide 22: 2H16 Outlook: Coexistence of Opportunities and Challenges
2H16 Outlook：Coexistence of Opportunities and Challenges Opportunities • Adjustment in global banking landscape provides room for development • National strategy of OBOR drives financing demand • Mainland enterprises going global spur demand for cross-country investment and M&As • RMB’s inclusion in
Slide 23: Business Focus in 2H16
Business Focus in 2H16 Corporate Banking Continuously optimise customer mix and income structure by strengthening treasury, financial advisory and IPO businesses, and boosting the contribution from SME customers Personal Banking Proactively promote branch network transformation, and strengthen capab
Slide 24: Q&A Session
Q&A Session August 30, 2016 ew ss Cp ER a rs (42 AR) ABR ZS) BOC HONG KONG (HOLDINGS) LIMITED
Slide 25: Appendix
Appendix ew ss Cp ER a rs (42 AR) ABR ZS) BOC HONG KONG (HOLDINGS) LIMITED
Slide 26: Condensed Income Statement
Condensed Income Statement HK$ m Restated 1H2016 % YoY 2H2015 % HoH 1H2015 Net interest income 12,172 13,292 (8.4) 12,447 (2.2) Net fee and commission income 5,667 5,725 (1.0) 5,740 (1.3) Other operating income 2,906 1,713 69.6 2,025 43.5 Net operating income before impairment allowances 20,745 20,7
Slide 27: Non-interest Income
Non-interest Income HK$ m Restated 1H2016 % YoY 2H2015 % HoH 1H2015 Fee and commission income Loan commissions 2,216 1,217 82.1 2,069 7.1 Credit card business 1,863 1,798 3.6 1,929 (3.4) Insurance 896 740 21.1 811 10.5 Securities brokerage 887 2,144 (58.6) 1,253 (29.2) Funds distribution 362 572 (36
Slide 28: Condensed Balance Sheet
Condensed Balance Sheet HK$ m 30.06.2016 31.12.2015 % Change Cash and balances with banks and other financial institutions 362,789 230,730 57.2 Placements with banks and other financial institutions 63,980 64,208 (0.4) Securities investments 622,809 574,998 8.3 Advances and other accounts 1,014,095
Slide 29: Advances to Customers
Advances to Customers 30.06.2016 31.12.2015 % Change HK$ m Loans for use in HK - corporate 384,549 300,766 27.9 Loans for use in HK - individual 275,794 270,721 1.9 Trade finance 84,578 79,108 6.9 Loans for use outside HK 244,287 239,648 1.9 Total advances to customers 989,208 890,243 11.1
Slide 30: Customer Deposits
Customer Deposits HK$ m 30.06.2016 31.12.2015 % Change Demand deposits and current accounts 147,185 134,069 9.8 Saving deposits 795,535 717,747 10.8 Time, call and notice deposits 528,961 553,173 (4.4) Structured deposits 2,648 2,571 3.0 Total deposits from customers 1,474,329 1,407,560 4.7
BOC Hong Kong (Holdings) — H1 2016 Earnings Presentation on 6ix