2018 Results in brief

  • Profit attributable to shareholders

    21

    %

  • Net operating income before
    change in expected credit losses
    and other credit impairment charges

    17

    %

  • Return on average ordinary shareholders’ equity

    16.0

    %

    1.8

    pp



  • Cost efficiency ratio

    29.5

    %

    0.9

    pp

For The Year At Year-End

For the Year 2018

  • Profit attributable to shareholders

    24,211

    HK$m

    201720,018 HK$m

  • Profit before tax

    28,432

    HK$m

    201723,674 HK$m

  • Operating profit


    27,947

    HK$m

    201723,547 HK$m

  • Net operating income before change in expected credit losses and other credit impairment charges

    41,215

    HK$m

    201735,357 HK$m

  • Return on average ordinary
    shareholders’ equity

    16.0%

    201714.2%

  • Cost efficiency ratio

    29.5%

    201730.5%

  • Earnings per share

    12.48

    HK$

    201710.30 HK$

  • Dividends per share

    7.50

    HK$

    20176.70 HK$

Change to presentation from 1 January 2018

Hong Kong Financial Reporting Standard 9 ("HKFRS 9")
The Group adopted the requirements of HKFRS 9 "Financial Instruments" from 1 January 2018, with the exception of the provisions relating to the presentation of gains and losses on financial liabilities designated at fair value, which were adopted from 1 January 2017. The impact of HKFRS 9 at 1 January 2018 on the consolidated financial statements of the Group was a decrease in net assets of HK$854m, arising from:

  1. A decrease of HK$1,077m from additional impairment allowances;
  2. An increase of HK$46m from the remeasurement of financial assets and liabilities as a consequence of classification changes; and
  3. An increase in net deferred tax assets of HK$177m.

Refer to "Standards adopted during the year ended 31 December 2018" and "Effects of reclassification upon adoption of HKFRS 9" in Notes 1 and 3 for further details.

At Year-End

(at 31 December 2018)

  • Shareholders’ equity

    162,082

    HK$m

    2017152,030 HK$m

  • Total assets


    1,571,297

    HK$m

    20171,478,418 HK$m

  • Capital ratios

  • Common Equity Tier 1 (“CET1”)

    Capital Ratio

    16.6%

    201716.5%

  • Tier 1 Capital Ratio

    17.8%

    201717.7%

  • Total Capital Ratio

    20.2%

    201720.1%

  • Liquidity ratios

  • Liquidity Coverage Ratio

    214.7%

    2017232.3%

  • Net Stable Funding Ratio

    154.0%

    2017N/A

Change to presentation from 1 January 2018

Hong Kong Financial Reporting Standard 9 ("HKFRS 9")
The Group adopted the requirements of HKFRS 9 "Financial Instruments" from 1 January 2018, with the exception of the provisions relating to the presentation of gains and losses on financial liabilities designated at fair value, which were adopted from 1 January 2017. The impact of HKFRS 9 at 1 January 2018 on the consolidated financial statements of the Group was a decrease in net assets of HK$854m, arising from:

  1. A decrease of HK$1,077m from additional impairment allowances;
  2. An increase of HK$46m from the remeasurement of financial assets and liabilities as a consequence of classification changes; and
  3. An increase in net deferred tax assets of HK$177m.

Refer to "Standards adopted during the year ended 31 December 2018" and "Effects of reclassification upon adoption of HKFRS 9" in Notes 1 and 3 for further details.

FIVE-YEAR FINANCIAL SUMMARY