WING HANG BANK, LTD. - PR Newswire Asiamms.prnasia.com/.../01_wing_hang_bank/d3_t3_0900_wang.pdf2012/06/15 · ANALYST MEETING Topic 1 WHB Operating Results Summary 2 WHB 2011 Review

WING HANG BANK, LTD.

ANALYST MEETING

8TH MARCH, 2012

ANALYST MEETING

Topic

1 WHB Operating Results Summary

2 WHB 2011 Review

3 (i) Loan by Industry Sectors

3 (ii) Loans for use in Macau

3 (iii) Loans for use in China

4 (i) Consolidated P&L Items

4 (ii) Investments in CDO

4 (iii) Net Gains / (Losses) for Trading & FV Instrument

5 Other Operating Income Breakdown

6 Other Operating Income Mix

7 Expenses Breakdown

8 Impairment Allowances on Loan


ANALYST MEETING

Topic

9 Impaired Loan Coverage

10 Overdue and Rescheduled Loans

11 Consolidated Balance Sheet Items

12 (i) Debt Securities and Placement Segmentation

12 (ii) Debt Securities by Counterparty

13 Loan Segmentation/Growth

14 Deposit Segmentation/Growth

15 Analysis of Customers’ Deposits

16 Key Ratios

17 - 18 Five-Year Trend

19 - 20 2011 Banco Weng Hang’s Results

21 WHB 2012 Outlook


WHB OPERATING RESULTS SUMMARY

� Profit attributed to shareholders increased 30.4% to a record

earning of HK$2,121.3 Million (2010: HK$1,626.3 Million)

� Earnings per share HK$7.14 (2010: HK$5.51)

� Total Dividend

2011 2010 % Increase

Interim Dividend 0.46 0.30

Final Dividend 1.34 1.08

Total 1.80 1.38 30.4

- 1 -


� Loan up 13.7%

� Deposit up 16.3%

� Asset quality remains sound

� No significant exposure to Europe zone

� Return on average shareholders’ fund 13.6%

� Strong growth in China

- Profit before tax up 47.0%

WHB 2011 REVIEW


- 2 -

LOAN BY INDUSTRY SECTORSHK$ in Million % Increase

2011 2010 /(Decrease)

� Property development & investment 18,283 16,352 11.8

� Residential mortgages - individuals 16,971 17,680 -4.0

� Transport & transport equipment in HK 7,102 6,299 12.7

� Share financing & financial concerns 3,821 2,941 29.9

� Consumer loan & credit card 2,323 2,134 8.9

� Manufacturing & trade finance 15,786 8,820 79.0

� Other loans to corporate 3,886 4,191 -7.3

� HOS 2,619 2,822 -7.2

� Other loans to individuals 4,275 3,998 6.9

� Loans for use in Macau 12,309 12,729 -3.3

� Loans for use in China 23,145 19,271 20.1

� Loans for use in others 58 17 241.9

110,578 97,254 13.7


- 3 (i) -

LOANS FOR USE IN MACAUHK$ in Million % Increase

2011 2010 /(Decrease)

� Property development & investment 2,216 2,834 -21.8

� Residential mortgages – individuals 6,612 5,958 11.0

� Transport & transport equipment 32 734 -95.6

� Manufacturing, wholesale & retail trade 473 474 -0.2

� Other loans to corporate 1,189 1,386 -14.2


12,309 12,729 -3.3


- 3 (ii) -

LOANS FOR USE IN CHINAHK$ in Million % Increase

2011 2010 /(Decrease)

� Property development & investment 5,037 6,011 -16.2

� Residential mortgages – individuals 3,977 3,419 16.3

� Equipment financing & transport 1,401 1,184 18.3

� Manufacturing, wholesale & retail trade 5,677 3,486 62.9

� Other loans to corporate 5,545 3,700 49.9


23,145 19,271 20.1


- 3 (iii) -

CONSOLIDATED PROFIT & LOSS ITEMSHK$ in Million % Increase

2011 2010 / (Decrease)

Net interest income 2,871 2,644 8.6

Other operating income 848 913 -7.1

Net gains / (losses) from financial instruments

held for trading & designated at FV 66 ( 259 ) -

Non-interest income 914 654 39.8

Operating income 3,785 3,298 14.8

Operating expenses ( 1,735) ( 1,610 ) 7.7

Operating profit before impairment

allowances 2,050 1,688 21.5

Loans impairment (charges) / release ( 30) 51 -

AFS impairment (charges) / release ( 18) 14 -

Operating profit 2,002 1,753 14.2

P & L (Fixed assets, inv. sec. & asso.co.) 519 195 166.1

Profit before taxation 2,521 1,948 29.4

Profit attributable to the shareholders 2,121 1,626 30.4


- 4 (i) -

INVESTMENTS IN CDO

HK$ in Million

Total

Exposure Markdown Net Exposure

Accumulated

� CDO 271 228 43


- 4 (ii) -

NET GAINS / (LOSSES) FOR TRADING AND FV INSTRUMENT


- 4 (iii) -

HK$ in Million

2011 2010

� Subordinated liabilities 170 ( 310 )

� CDO ( 35 ) 20

� CDS 3 7

� Icelandic Bank ( 5 ) 6

� Other credit derivatives &

debt investments ( 67 ) 18

66 ( 259 )

OTHER OPERATING INCOME BREAKDOWN

HK$ in Million % Increase

2011 2010 /(Decrease)

� FX Income 132.5 187.0 -29.1

� Bills Commission 77.2 61.0 26.6

� Loan Commission 185.3 172.0 7.7

� Insurance Commission 73.4 68.1 7.8

� Share Brokerage 135.6 169.4 -19.9

� Credit Card Commission 71.1 60.9 16.7

� Wealth Management 17.0 14.7 15.4

� Other Dealing Income 1.9 1.6 18.8

� Other Fee & Income 154.1 177.9 -13.4

� Total Core Income 848.1 912.6 -7.1


- 5 -

OTHER OPERATING INCOME MIX

Loan Commission

22% (19%)

Foreign Exchange

16% (20%)

Insurance

9% (7%)

Bills Commission

9% (7%)

Shares

Brokerage

16% (19%)

Others

18% (19%)

Credit Card Commission

8% (7%)

Wealth Management

2% (2%)

( ) 2010


- 6 -

EXPENSES BREAKDOWN


2011 2010 / (Decrease)

� Total Operating Expenses 1,734.7 1,610.1 7.7

� Cost to Income Ratio 45.8% 48.8% -3.0


- 7 -

IMPAIRMENT ALLOWANCES ON LOAN

HK$ in Million

2011 2010

Collective 138 152

Individual 55 53

Total Impairment Allowances 193 205

Collective ( 14 ) ( 10 )

Individual 44 ( 41 )

Total Impairment Allowances

charged / (released) to P & L 30 ( 51 )


- 8 -

IMPAIRED LOAN COVERAGE

HK$ in Million

2011 2010

� Impaired loan - amount 336 301

� As a % of total loans 0.30% 0.31%

� Individual impairment

allowances 54 52


- 9 -

OVERDUE AND RESCHEDULED LOANS

HK$ in Million

2011 2010

� Overdue loans - amount 329 183


� Covered portion 277 116

� Uncovered portion 52 67

� Individual impairment allowances 37 39

� Rescheduled loans - amount 18 66



- 10 -

CONSOLIDATED BALANCE SHEET ITEMS

HK$ in Million

2011 2010

Cash and due from banks 33,587 15,697

Investment securities 31,162 37,633

Advances to customers 110,578 97,254

Total deposits 161,320 137,062

Shareholders’ funds 16,904 14,279

Total assets 187,249 159,297


- 11 -

DEBT SECURITIES AND PLACEMENT SEGMENTATION

Europe 2,813 (5%)

US and Canada

5,164 (9%)

Australia & New Zealand

5,624 (10%)

Singapore 890 (2%)

Hong Kong

& Macau

13,786 (25%)

China

25,330 (46%)

Others 1,669 (3%)

Total: HK$55,276 Million


- 12 (i) -

DEBT SECURITIES BY COUNTERPARTY

HK$ in Million

2011 2010

� Sovereign 11,932 8,985

� P.S.E. 1,371 3,759

� Banks

– guaranteed by Sovereign 8,979 12,320

– others 4,703 7,935

� Corporates

– guaranteed by Sovereign 78 79

– others 3,869 4,260

� Total 30,932 37,338


- 12 (ii) -

LOAN SEGMENTATION / GROWTHHK$ in Million % Increase

2011 2010

Advances to customers 110,578 97,254 13.7


- 13 -

Property development

& investment

17% (17%)

Share financing &

financial concerns

3% (3%)

Residential mortgages

– individuals

15% (18%)Transport & transport

equipment

7% (7%)

Consumer loan & credit card

2 % (2%)

Manufacturing & trade finance

14% (9%)

Loans to corporates

4% (4%)

Loans to individuals

6% (7%)

Loans use in Macau

11% (13%)

Loans use in China

21% (20%)

( ) Dec 2010

DEPOSIT SEGMENTATION / GROWTH


2011 2010 / (Decrease)

Demand 20,884 21,966 -4.9

Savings 25,928 28,663 -9.5

Time 110,943 84,978 30.6

Customers’ Deposits 157,755 135,607 16.3

FRCD (at amortised cost) 2,605 180 1347.2

FRCD (at fair value) 152 152 -

Total FRCD 2,757 332 730.4

Interbank Deposits 808 1,123 -28.0

Total Deposits 161,320 137,062 17.7


- 14 -

ANALYSIS OF CUSTOMERS’ DEPOSITS

Deposit Mix

Demand

13% (16%)Savings

17% (21%)

Time

70% (63%)

Currency Mix

Fr Cy

47% (43%)

HKD

53% (57%)


( ) Dec 2010

- 15 -

KEY RATIOS2011 2010

�CAR – Tier 1 10.1% 10.3%

�CAR 15.8% 16.6%

� Liquidity Ratio 39.9% 45.6%

� Net Interest Margin (IB) 1.67% 1.84%

� Return on Average Assets 1.19% 1.09%

� Return on Average Shareholders’

Fund 13.6% 12.2%

� Loans to Deposits Ratio 68.5% 71.0%


- 16 -

FIVE-YEAR TREND - 1

400

800

1,200

1,600

2,000

2,400

2007 2008 2009 2010 2011

2,031

1,162 1,205

1,626

2,121

Net Profit (HK$ in Million)


- 17 -

100

120

140

160

180

200

2007 2008 2009 2010 2011

139.7134.4

147.1

159.3

187.2

Total Assets (HK$ in Billion)

FIVE-YEAR TREND - 2

80

100

120

140

160

180

2007 2008 2009 2010 2011

120.1 117.1127.4

137.1

161.3

Total Deposits (HK$ in Billion)


- 18 -

40

60

80

100

120

2007 2008 2009 2010 2011

74.680.3 80.5

97.3

110.6

Total Loans (HK$ in Billion)

BANCO WENG HANG - PROFIT & LOSS ITEMS


2011 2010 / (Decrease)

Net interest income 318 320 -0.5

Other operating income 158 161 -1.7

Net gains / (losses) from financial instruments

held for trading & designated at FV 1 ( 12 ) -

Non-interest income 159 149 7.1

Operating income 477 469 1.9

Operating expenses ( 216) ( 204 ) 6.3

Operating profit before impairment

allowances 261 265 -1.5

Loans impairment release 5 2 127.8

P & L (Fixed assets & inv. sec.) 7 - -

Profit before taxation 273 267 2.1

Profit attributable to the shareholders 240 235 1.9


- 19 -

BANCO WENG HANG – FINANCIAL HIGHLIGHTS

HK$ in Million

2011 2010

Cash and due from banks 2,022 1,327

Investment securities 985 466

Advances to customers 13,277 12,889

Total deposits 18,646 16,897

Net interest margin 1.66% 1.78%

Cost to income ratio 45.4% 43.5%


- 20 -

� Economic growth : slower pace

� Continue to growth in China

– expand brand network

– provide cross-border lending products

� Hong Kong & Macau

– grow assets and wealth management service

� RMB business in three core markets

WHB 2012 OUTLOOK


- 21 -

Documents

WING HANG BANK, LTD. - PR Newswire Asiamms.prnasia.com/.../01_wing_hang_bank/d3_t3_0900_wang.pdf2012/06/15 · ANALYST MEETING Topic 1 WHB Operating Results Summary 2 WHB 2011 Review