BCM shareholders recover stability, issue interim dividends

The two parent companies of local BCM have stabilized after the ending of disease control measures, issuing interim dividends of HKD0.36 and HKD0.11 per share.

Dah Sing Financial Holdings Limited (DSFH) announced yesterday its interim results for the period ended 30 June 2023. Profit attributable to shareholders rose by 9% year-on-year to HKD922 million amidst the gradual recovery in the Hong Kong economy in the first half of 2023. Earnings per share for the period amounted to HKD2.89. The Board of Directors declared an interim dividend of HKD0.36 per share, in contrast to HKD0.33 per share for 1H2022.

Meanwhile, Dah Sing Banking Group Limited (DSBG) reported a 1% year-on-year increase in profit attributable to shareholders to HKD1,112 million for the period ended 30 June 2023. Earnings per share was HKD0.79. The Board of Directors declared an interim dividend of HKD0.11, in contrast to HKD0.10 for 1H2022, per share.

DSBG’s operating profit after credit impairment losses rose 8% year-on-year to HK$1,001 million. Net interest income grew 12% year-on-year compared to the first half of 2022. Net interest margin improved by 8 bps to 1.93% compared to the 2022 average of 1.85%. This was achieved through yield improvements in its interest earning assets and its strong focus on deposit cost management.

Net fee and commission income fell 22% year-on-year during the period as customer investment appetite remained subdued given the Hong Kong stock market weakness and the global market volatility. The lower fee and commission income was also partly attributable to the termination of its previous bancassurance distribution agreement in July 2022, which resulted in no related fee amortization in the first half of 2023 in contrast with the same period last year. Net trading and other income dropped sharply by 64% year-on-year during the period, mainly impacted by the higher funding swap cost due to the widened USD-HKD interest rate gap during the half year.

DSBG’s credit impairment losses fell by 49% during the period, driven by prudent credit risk management and improved economic conditions. Its impaired loan ratio fell slightly by 1 bp to 1.85% from 1.86% at the end of 2022.

Dah Sing Bank’s (DSB) exclusive 15-year bancassurance partnership with Sun Life Hong Kong Limited, announced in January 2023, was officially launched in July 2023 with encouraging early results.

Meanwhile, DSB has announced the opening of its new Shenzhen Branch at the beginning of this month, marking an important milestone as the first foreign bank in mainland China to be granted a dual operating license to set up a local branch in addition to its locally incorporated wholly-owned bank, Dah Sing Bank (China) Limited.

Asked if the Country Garden saga in mainland China will exert high pressure on the enterprises’ financial sturdiness, the panel of executives said the matter “would only pose minute risks on the enterprises, for only a micro number of shares are being held” by the banking group.

It has been revealed that Country Garden, a mega serial real property development in mainland China, has fallen into financial difficulties.

BCM surpasses main market performance amid multiple challenges

At the online press conference announcing the results, the panel of DSFH executives disclosed that “although there have been multiple challenges facing BCM, its performances have well surpassed those of the market.”

It was also disclosed that the local bank has garnered increased amounts in loans and customer deposits.

“There was also low double-digit increase year-over-year in terms of total operational income,” the panel of executives highlighted. Net income has also seen an increase due to decreased loan impairment.

When asked by the Times if the parent companies would further expand their interactions with BCM to provide services such as opening DSB credit cards and bank accounts at or through BCM, the panel of executives said that room for development in both personal and corporate products and services will be explored constantly.

As the owner of the Macau Insurance Company, the two enterprises have also highlighted that despite the fact that several claims related to Covid-19 infections were made to the company, the insurance agency is still intact in terms of financial status. AL