Chong Hing Bank Announces 2019 Interim Results
Release Date:2019-08-26 11:06:53

Chong Hing Bank Limited (“Chong Hing Bank” or the “Bank”; stock code: 01111) announced its interim results for the six months ended 30 June 2019. The Bank’s core businesses and financial position achieved stable growth, asset quality maintained sound, and total assets exceeded HK$200 billion for the first time. The Bank’s profitability continued to improve as a result of the growth of the total operating income (by 8.6% compared with the same period in 2018) driven by an increase in net interest income, as well as effective cost control.  

      Chong Hing Bank is committed to developing the Mainland China market by actively expanding its cross-border financial services. Its total asset in the Mainland exceeded HK$30 billion while deposit and loans increased by 8% and 11% respectively when compared with the end of 2018. Facing the massive development opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area, the Bank will continue to expand its customer base in the Greater Bay Area, steadily strengthening its network distribution in the Mainland, and further develop its business in the Greater Bay Area. The Bank will advance the preparatory work for the opening of its Shanghai Branch and other sub-branches, thereby paving the way for establishing a Mainland-incorporated bank. 
      The Bank’s 2019 interim results are highlighted as follows:

Operating profit after impairment allowances amounted to HK$1,069 million, representing an increase of 6.4% over the same period last year.

Net interest income at HK$1,545 million was 13.6% higher than the same period last year. 

Profit attributable to equity owners amounted to HK$905 million, representing an increase of 5.9% over the same period last year.

Impaired loan ratio remains low. Capital adequacy ratio and liquidity maintenance ratio are above the relevant statutory requirements. 

An interim cash dividend of HK$0.17 per share is declared for the six months ended 30 June 2019 (2018 interim cash dividend: HK$0.17 per share).

Mr Zhang Zhaoxing, Chairman of Chong Hing Bank, said, ‘In the first half of 2019, facing complex and critical external economic changes, Chong Hing Bank continued to make persistent efforts to meet challenges. The Bank steadily promoted its core businesses and managed to achieve a satisfactory performance by strengthening risk prevention and controls, and deepening its reform and innovation. In the Top World Banks 2019 released by “The Banker” magazine, the Bank ranked among the top 400 for the first time, receiving recognition of its all-round strength from the international community. In the second half of this year, apart from further enhancing its risk management, Chong Hing Bank will adhere to its positioning as a provider of “cross-border expertise”, and launch innovative financial products and services to meet the challenges of the rapidly changing market and reinforce its presence in the Mainland market.’

Mr Zong Jianxin, Chief Executive of Chong Hing Bank, said, ‘Chong Hing Bank is progressively carrying forward its five-year strategic plan, constantly cultivating competitive advantages in cross-border business, establishing a number of frontline profit centres, pushing forward the diverse development of its operations in order to provide excellent and more competitive services and products for customers. Looking ahead, the Bank will grasp the opportunities arising from the development of the Guangdong-Hong Kong-Macao Greater Bay Area and capitalise on the abundant resources and regional network of its major shareholder Yuexiu Group and strategic shareholder Guangzhou Metro. While it continues to strengthen risk management, the Bank will proactively expand its business in the Mainland. In addition, the Bank will speed up its digital banking transformation and Fintech application, enabling the integration of Fintech and traditional business. Our goal is to achieve high quality development and create greater value as well as sustained profit growth for Chong Hing Bank.’