Dah Sing Financial Holdings (440) investor relations material

Executive summary

• Strong revenue growth from net interest and non-interest income, supported by improved margins, robust wealth management demand, and Hong Kong's 5.1% GDP growth in H1 2026.

• Prudent credit risk management led to lower impaired loan ratios and reduced impairment charges, with asset quality improving.

• Profit attributable to shareholders rose 3.7% to HK$1,457.6 million, with annualised ROE at 10.0%.

• Interim dividend declared at HK$1.20 per share, payable on 24 September 2026.

• Sound capital and liquidity positions underpin long-term sustainable growth.

Financial highlights

• Net interest income grew 6.5% year-over-year to HK$2,997.6 million, with net interest margin at 2.44%.

• Net fee and commission income surged 29.3% year-over-year to HK$931.8 million.

• Operating profit before impairment rose 7.8% to HK$2,512.8 million.

• Credit impairment losses decreased 0.7% to HK$724.1 million.

• Cost-to-income ratio improved to 41.8% from 43.3% year-over-year.

Outlook and guidance

• Continued focus on disciplined funding cost control and prudent risk management amid ongoing market uncertainties.

• Hong Kong's long-term outlook remains positive, supported by AI development, increased Mainland investment, and improving consumer sentiment.

• Sustained demand for wealth management expected to support non-interest income.