BOC Hong Kong (2388) H2 2023 earnings summary

Executive summary

• 2023 operating profit reached HK$42.6bn, up 21.9% YoY; profit attributable to equity holders was HK$32.7bn, up 26.1%.

• Shareholder returns increased: dividend per share rose 23.2% to HK$1.672, with a 54.0% payout ratio.

Financial highlights

• Net operating income before impairment allowances rose 20.8% to HK$65.5bn; pre-provision operating profit increased 31.2% to HK$48.9bn.

• Net interest income increased 28.8% to HK$54.5bn; net fee and commission income fell 6.5% to HK$9.2bn.

• Profit for the year was HK$34.9bn, up 28.0%; basic EPS rose 26.1% to HK$3.095.

• Total assets grew 5.5% to HK$3,868.8bn; customer deposits rose 5.3% to HK$2,503.8bn and customer advances rose 3.3% to HK$1,702.3bn.

Outlook and guidance

• 2024 challenges include slower global recovery, uncertainty in major economies’ monetary policies and persistent demands on banks’ comprehensive risk management.

• Opportunities include Mainland China’s recovery, Hong Kong’s development of the “Eight Centres,” expanded Mutual Market Access schemes, RCEP policy benefits and Belt & Road cooperation.

• Priorities include sustained profitability, capital-light growth, digital transformation, disciplined risk control, regional integration and RMB internationalisation.