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Chong Hing Bank Announced Its 2015 Interim Results
Release Date:2015-09-09 16:36:59

Substantial Profit Growth and Good Assets Quality

Steady Growth in Hong Kong and Rapid Expansion in Mainland China

(August 17, 2015, Hong Kong) - Chong Hing Bank (stock code: 01111) proudly announced its interim results as of June 30, 2015 as follows:

1. The net profit was HK$ 726 million, with an increase of 87% compared to that in the same period last year (excluding the net profit on sales of Chong Hing Bank Center in 2014).

2. The shareholders' return on equity (annualized) was 14.89%, with an increase of 5.54% compared to that in 2014 (9.35%).

3. The clients' total loan was increased to HK$ 62.333 billion by 10% compared to that at the end of 2014, where part of the growth came from the loan growth of Hong Kong stock brokers, Hong Kong listed companies and China's state-owned enterprises.

4. The total asset was increased to HK$ 115.821 billion by 7% compared to that at the end of 2014.

5. Due to prudent management of credit risk taking, the loan assets quality was well maintained, the impaired loan ratio was low, the provision coverage was high, and the capital adequacy ratio and liquidity ratio were considerably higher than the relevant statutory requirements. The impaired loan ratio was 0.05%; the loan impairment provision coverage was 891.52%; and the restructured loan ratio was 0.01%.

6. The declared interim cash dividend for the six months ended June 30, 2015 was HK$ 0.21 per stock (2014 interim cash dividend: HK$ 0.19 per stock).

 

Ms. Margaret Leung, Vice Chairman and Managing Director of Chong Hing Bank, said, "With the joint efforts of staff, Chong Hing Bank gained achievements again in the first half year of 2015. The core business developed rapidly, the overall financial situation was sound, the assets quality was well-maintained, and the profit quality was constantly increased. The business potential of Hong Kong was released, the business of Mainland China was successfully developing, and the deposit & loan business, the stock broking business and the cross-border business achieved rapid growth. Looking into the future, Chong Hing Bank will give full play to the geographical advantage, shareholder advantage and professional service advantage to continue accelerating the domestic business development and the outlet layout while steadily developing the business in Hong Kong under the great support of Yuexiu Group, seize the opportunity of cross-border RMB business openness of Guangdong Nansha Free Trade Area to comprehensively improve the cross-border integrated financial services, future optimize the enterprise-wide risk management system, and practically strengthen the information construction capacity, so as to achieve the dream and create the future together with the clients."

Mr. Zhang Zhaoxing, Chairman of Chong Hing Bank, said, "in recent years, Yuexiu Group has actively seized the opportunity of Guangdong-Hong Kong cooperation, aiming to become the pioneer and pusher of Guangdong-Hong Kong financial cooperation, and banking business will become strategically important for the future development. Since becoming the member of Yuexiu Group in February 2014, Chong Hing Bank has the vision to become a competitive financial institution with the foundation in Hong Kong, and with the services covering Guangzhou and other regions of Mainland China and extending to the Asia Pacific Region. Chong Hing Bank established its Guangzhou Sub-branch in 2014, and then Foshan Sub-branch also started business in January 2015. The two sub-branches have achieved rapid business development. Meanwhile, supported by Yuexiu Group, Chong Hing Bank has also achieved initial success in the integration of industry and finance with other businesses of Yuexiu Group. In the future, our bank will make efforts to improve the cross-border financial integrated service capacity, strengthen the cross-border trade financing and RMB loan business by launching more diversified investment products denominated in RMB, and expand the RMB deposit base, so as to construct a perfect cross-border RMB business center. On the happy occasion of 30th anniversary of Yuexiu Group in 2015, Chong Hing Bank will adhere to core value of Yuexiu Group - "Excellence without Limits", and continue to seize the development opportunity of Sino-Hong Kong integration, realizing greater return for the shareholders."