Bank of East Asia : Half Year Report

Contents 目錄

Financial Highlights	1	財務摘要	107
Corporate Information	2	公司資料	108
Interim Results	3	中期業績	109
Consolidated Income Statement	3	綜合收益表	109
Consolidated Statement of	5	綜合全面收益表	111
Comprehensive Income
Consolidated Statement of Financial	6	綜合財務狀況表	112
Position
Consolidated Statement of Changes in	7	綜合權益變動表	113
Equity
Condensed Consolidated Cash Flow	8	簡略綜合現金流量表	114
Statement
Notes to the Interim Financial Statements	9	中期財務報表附註	115
Supplementary Financial Information (unaudited)	70	補充財務資料（未經審核）	176
Independent Review Report	76	獨立審閱報告	182
Interim Dividend	77	中期股息	183
Closure of Register of Members	77	暫停辦理股票過戶登記日期	183
Intention to Initiate On-market Share Buy-back	77	擬進行場內股份回購	183
Financial Review	77	財務回顧	183
Business Review	78	業務回顧	184
Risk Management	87	風險管理	193
Sustainability	90	可持續發展	196
Changes to Information in respect of	92	董事資料的變動	198
Directors
Directors' and Co-Chief Executives' Interests	94	董事及聯席行政總裁權益	200
Information on Share Options	97	認股權資料	203
Interests of Substantial Shareholders	102	主要股東及其他人士的權益	208
and Other Persons
Purchase, Sale or Redemption of the Bank's	104	購入、出售或贖回本行的上市證券	210
Listed Securities
Compliance with Corporate Governance	105	遵守企業管治守則	211
Code
Compliance with Model Code	105	遵守標準守則	211
Publication of Interim Report	106	刊發中期報告	212
Glossary	213	詞彙	213

FINANCIAL HIGHLIGHTS
			30 June			30 June		31 December
			2022	2021	2021
For the half year ended
Profitability	HK$ Mn			HK$ Mn		HK$ Mn
Operating profit before impairment losses	3,712	3,768	3,194
Profit attributable to owners of the parent	1,499	2,671	2,599
Earnings Per Share and Dividends Per Share	HK$			HK$		HK$
Basic earnings	0.39	0.78	0.75
Dividends	0.16	0.35	0.35
Key Ratios	%	%	%
Return on average assets (annualised)1	0.2	0.5	0.5
Return on average equity (annualised)2	2.2	4.6	4.3
Cost-to-income ratio3	54.3	55.2	59.4
At period/year end
Balance Sheet Strength	HK$ Mn			HK$ Mn		HK$ Mn
Total loans and advances to customers and trade bills	554,443	546,577	559,580
Total assets	908,211	900,509	907,470
Total customers' deposits and certificates of deposit issued	691,221	661,656	697,832
Total equity	106,325	114,506	116,050
Key Ratios	%	%	%
Loan to deposit ratio4	79.8	80.9	78.6
Impaired loan ratio5	1.58	1.21	1.09
Common Equity Tier 1 capital ratio6	15.7	16.9	17.0
Tier 1 capital ratio6	17.7	19.8	19.8
Total capital ratio6	20.2	22.4	21.6

Notes:

1. Annualised profits attributable to the owners of the parent for the period after deduction of the distributions to Additional Tier 1 issue holders / Monthly average balance of the total assets for the period including last year-end balance.
2. Annualised profits attributable to the owners of the parent for the period after deduction of the distributions to Additional Tier 1 issue holders / Monthly average balance of the total equity attributable to the owners of the parent for the period including last year-end balance.
3. Operating expenses / Operating income.
4. Total gross loans and advances to customers / Total deposits from customers and certificates of deposits issued.
5. Gross impaired loans and advances to customers / Total gross loans and advances to customers.
6. It is computed on a consolidated basis in accordance with Banking (Capital) Rules.

1 The Bank of East Asia, Limited Interim Report 2022

CORPORATE INFORMATION

SPECIAL ADVISOR TO THE BOARD

Dr. Isidro FAINÉ CASAS

BOARD OF DIRECTORS

Executive Directors

Dr. the Hon. Sir David LI Kwok-po

(Executive Chairman)

Mr. Adrian David LI Man-kiu

(Co-Chief Executive)

Mr. Brian David LI Man-bun

(Co-Chief Executive)

Non-executive Directors

Professor Arthur LI Kwok-cheung

(Deputy Chairman)

Mr. Aubrey LI Kwok-sing

Mr. Winston LO Yau-lai

Mr. Stephen Charles LI Kwok-sze

Dr. Daryl NG Win-kong

Mr. Masayuki OKU

Dr. Francisco Javier SERRADO TREPAT

Independent Non-executive Directors

Dr. Allan WONG Chi-yun

(Deputy Chairman)

Dr. the Hon. Rita FAN HSU Lai-tai

Mr. Meocre LI Kwok-wing

Dr. the Hon. Henry TANG Ying-yen

Dr. Delman LEE

Mr. William Junior Guilherme DOO

Dr. David MONG Tak-yeung

SENIOR ADVISOR

Mr. CHAN Tze-ching

SENIOR MANAGEMENT

Mr. Adrian David LI Man-kiu

Co-Chief Executive

Mr. Brian David LI Man-bun

Co-Chief Executive

Mr. Samson LI Kai-cheong

Deputy Chief Executive & Chief Investment Officer

Mr. TONG Hon-shing

Deputy Chief Executive & Chief Operating Officer

COMPANY SECRETARY

Mr. Alson LAW Chun-tak

AUDITOR

KPMG

Certified Public Accountants

Public Interest Entity Auditor registered in accordance with the Financial Reporting Council Ordinance

SHARE LISTING

The Stock Exchange of Hong Kong Limited

SHARE REGISTRAR

Tricor Standard Limited

Telephone: [phone]

Facsimile: (852) 2810 8185

ADR DEPOSITARY BANK

BNY Mellon

Telephone: 1-888-BNY-ADRS

E-mail: [e-mail]

REGISTERED OFFICE

10 Des Voeux Road Central, Hong Kong Telephone: [phone] Facsimile: (852) 3608 6000

Website: www.hkbea.com

E-mail: [e-mail]

The Bank of East Asia, Limited Interim Report 2022

2

INTERIM RESULTS

The Board of Directors of the Bank is pleased to announce the unaudited results (Note 1(a)) of the Group for the six months ended 30th June, 2022. The interim financial report is prepared on a basis consistent with the accounting policies and methods adopted in the 2021 audited financial statements, except for the accounting policy changes that are expected to be reflected in the 2022 audited financial statements. Details of these changes in accounting policies are set out in Note 2. The interim financial report is unaudited, but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the HKICPA. KPMG's independent review report to the Board is included on page 76.

Consolidated Income Statement

				6 months ended			6 months ended
				30/6/2022	30/6/2021
			Notes
			HK$ Mn			HK$ Mn
Interest income		3	9,658	8,887
Interest income calculated using the effective interest method		10,154		9,403
Related interest expense			(496)		(516)
		4
Interest expense		(3,828)	(3,364)
Net interest income			5,830	5,523
		5
Fee and commission income		1,751		1,969
Fee and commission expense			(311)		(429)
Net fee and commission income	6	1,440	1,540
Net trading profit		441	561
Net result on financial instruments at FVTPL	7	34	173
Net result on financial assets	measured at FVOCI	8	(1)	21
Net loss on sale of investments measured at amortised cost	9	-	(13)
Net hedging profit		67	64
Net insurance profit		10	157	371
Other operating income		11	150	175
Non-interest income			2,288	2,892
Operating income		12	8,118	8,415
Operating expenses		(4,406)	(4,647)
Operating profit before impairment losses		3,712	3,768
	13
Impairment losses on financial instruments	(2,136)	(581)
Impairment losses			(2,136)	(581)
Operating profit after impairment losses	14	1,576	3,187
Net gain/(loss) on disposal of fixed assets	33	(22)
Valuation gains/(losses) on investment properties	23	3	(123)
Share of profits less losses of	associates and joint ventures		190	129
Profit for the	period before taxation		1,802	3,171
Income tax			15	(292)	(474)
Profit for the	period			1,510	2,697

3 The Bank of East Asia, Limited Interim Report 2022