Dah Sing Financial Holdings Limited · HKEX:440
Dah Sing Financial — H1 2023 Earnings Presentation
21 slides from Dah Sing Financial's earnings presentation, Aug 23, 2023
Slide 1: Dah Sing Financial Group 2023 Interim Results
Dah Sing Financial Group 2023 Interim Results 23 August 2023
Slide 2: Performance highlights
Performance highlights • Mild growth in net interest income with improved net interest margin and modest loan growth • Non-interest income decreased mainly as a result of no amortization of bancassurance fee and weaker customer investment appetite and higher cost of funding swaps • Credit quality im
Slide 3: Financial Highlights
Financial Highlights ED ivenhee Ca DAH SING FINANCIAL GROUP
Slide 4: Dah Sing Banking Group (2356)
Dah Sing Banking Group (2356) HK$’ million 1H23 1H22 Change Net interest income 2,269 2,020 +12% Net fee and commission income 378 482 -22% Net trading income and other income 44 125 -64% Total operating income 2,691 2,627 +2% Operating expenses (1,533) (1,391) +10% Credit impairment losses (157) (3
Slide 5: Dah Sing Financial Holdings (0440)
Dah Sing Financial Holdings (0440) 1H23 1H22 HK$’ million Change (restated) Net interest income 2,333 2,028 +15% Net fee and commission income 369 475 -22% Net trading income, net insurance service result and other operating income net of insurance finance expense 131 242 -46% Total operating income
Slide 6: Dah Sing Banking Group
Dah Sing Banking Group ED ivenhee Ca DAH SING FINANCIAL GROUP
Slide 7: Key return indicators
Key return indicators 8% 7.4% 7.4% 6% 4% 2% 0.9% 0.9% 0% 1H22 1H23 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 19.3% 19.7% 20% 60% 18.0% 3.4% 3.4% 3.4% 50% 15% 0.7% 0.7% 0.5% 40% 62.5% 10% 30% 50.4% 45.3% 15.2% 15.6% 14.1% 20% 5% 10% 0% 0% 30 Jun 22 31 Dec 22 30 Jun 23 30 Jun 22 31 Dec 22 30 Jun 23 CET1 Additional T1 T2 8
Slide 9: Gross advances to customers and trade bills
Gross advances to customers and trade bills 150,000 141.1 bn 140.2 bn 142.4 bn Change relative to 2022 year-end : 140,000 +1.6% 130,000 Loans for use outside 26% 25% 24% HK 120,000 110,000 6% Trade finance and 100,000 6% 7% trade bills 90,000 11% 11% 11% HK$ million 80,000 Credit card advances 70,00
Slide 10: Net interest margin
Net interest margin 2.2% 2.0% 1.97% 1.93% 1.85% 1.8% 1.74% 1.6% 1.4% 1.2% 2022 average 1H22 2H22 1H23 10
Slide 11: Income from core businesses
Income from core businesses 4,500 4,199 * 69 2% 4,000 Net trading income 3,500 and other 1,767 42% operating income 3,000 Net fee and 2,627 2,691 commission 44 2% HK$ million 2,500 125 5% income 378 14% 482 18% Net interest 2,000 income 1,500 2,020 2,363 56% 2,269 84% 77% 1,000 500 0 1H22 2H22 1H23
Slide 12: Credit quality
Credit quality 600 498 500 400 305 HK$’m 300 Credit 157 impairment 200 losses 100 0 1H22 2H22 1H23 30 Jun 22 31 Dec 22 30 Jun 23 0.0% Overdue and 0.5% rescheduled loans ratio 1.0% Impaired loan ratio 1.5% 1.30% 1.41% 1.61% 2.0% 1.86% 1.80% 1.85% 12
Slide 13: Corporate Banking
Corporate Banking • Moderate decline in net interest income due to higher funding cost and weak market demand for new loans • Non-interest income rose moderately led by higher FX-related fee and wealth management incomes • Higher profitability mainly due to lower credit impairment charge • Focus on
Slide 14: Personal Banking
Personal Banking • Low double-digit growth in net interest income driven by higher average loan balance and improved net interest margin • Non-interest income fell, primarily impacted by the weak customer investment appetite and continued suspension of bancassurance sales • Underlying profitability
Slide 15: Treasury and Global Markets
Treasury and Global Markets • Slightly lower segmental profit as the higher net interest income was offset by weaker trading income • Customer business remained robust, continuing close cooperation with both our retail banking and commercial banking businesses • Conservative liquidity management - a
Slide 16: Mainland China and Macau
Mainland China and Macau Macau: • Increase in profit due mainly to lower credit impairment charges despite the subdued investment sentiment and weak loan demand • Positive growth in loan balance and customer deposits PRC: • DSB (China): Performance under pressure due to soft loan growth, weaker NIM
Slide 17: Dah Sing Financial Group
Dah Sing Financial Group ED ivenhee Ca DAH SING FINANCIAL GROUP
Slide 18: General Insurance
General Insurance • The Group’s insurance business adopted HKFRS 17 in 1H23 and restated its results for 1H22 • Based on the new accounting basis, insurance revenue increased by 7.7% to HK$441 million during the period, with Hong Kong insurance business increased by 15.0% to HK$324 million • There w
Slide 19: General Insurance
General Insurance • Several business lines reported strong growth, including Employees’ Compensation and Motor • Stable combined ratio given effective cost management and disciplined underwriting • Respectable increase in “float” available for investment from HK$594 million at 31 Dec 2022 to HK$725
Slide 20: Conclusions
Conclusions ED ivenhee Ca DAH SING FINANCIAL GROUP 20
Slide 21: Conclusions
Conclusions • Our core businesses remained resilient and delivered stable performance amid a gradual recovery in the local economy • Higher net interest income with respectable improvement in net interest margin, offsetting the weakness in non-interest income • Slightly higher profit attributable to
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