Earnings release
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoev er for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. (Incorporated in Hong Kong with limited liability under the Companies Ordinance) The holding company of Dah Sing Bank, Limited (Stock Code: 2356) ANNOUNCEMENT OF 2026 INTERIM RESULTS - 1 - The Directors of Dah Sing Banking Group Limited ( the “Company”) are pleased to present the interim results and condensed consolidated financial statements of the Company and its subsidiaries (collectively the “Group”) for the six months ended 30 June 2026. The unaudited profit attributable to shareholders for the six months ended 30 June 2026 was HK$1,780.5 million. UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS The unaudited 2026 interim condensed consolidated financial statements of the Group have been prepared in accordance with Hong Kong Accounting Standard No. 34 “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants. UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENT For the six months ended 30 June Variance HK$’000 Note 2026 2025 % Interest income 3 4,852,784 5,318,854 Interest expense 3 (1,882,516) (2,542,396) Net interest income 2,970,268 2,776,458 7.0 Fee and commission income 4 1,031,942 829,048 Fee and commission expense 4 (92,775) (102,285) Net fee and commission income 939,167 726,763 29.2 Net trading income 5 186,517 271,533 Other operating income 6 27,299 20,842 Operating income 4,123,251 3,795,596 8.6 Operating expenses 7 (1,753,134) (1,707,075) 2.7 Operating profit before impairment losses 2,370,117 2,088,521 13.5 Credit impairment losses 8 (723,807) (728,082) -0.6 Operating profit before gains and losses on certain investments and fixed assets 1,646,310 1,360,439 21.0 Net gain/ (loss) on disposal of other fixed assets 5 (40) Net gain on disposal of financial assets at amortised cost 11,665 - Net gain on disposal of financial assets at fair value through other comprehensive income 2,485 - Share of results of an associate 511,385 442,756 Loss on deemed disposal of investment in an associate 9 (125,311) - Share of results of jointly controlled entities 20,708 15,902 Profit before taxation 2,067,247 1,819,057 13.6 Taxation 10 (286,766) (240,207) Profit for the period attributable to Shareholders of the Company 1,780,481 1,578,850 12.8 Interim dividend 492,013 435,783 Earnings per share Basic 11 HK$1.27 HK$1.12 Diluted 11 HK$1.18 HK$1.05
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Dah Sing Banking Group Limited - 2 - UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 30 June HK$’000 2026 2025 Profit for the period 1,780,481 1,578,850 Other comprehensive income for the period Items that may be reclassified to the consolidated income statement: Investments in securities Net change in fair value of debt instruments at fair value through other comprehensive income (255,759) 184,237 Share of other comprehensive income of an associate accounted for using the equity method 25,631 (148,183) Net gain realised and transferred to consolidated income statement upon: - Disposal of debt instruments at fair value through other comprehensive income (2,485) - Deferred income tax related to the above 38,680 (22,333) (193,933) 13,721 Exchange differences arising on translation of the financial statements of foreign entities 168,094 280,921 Items that will not be reclassified to the consolidated income statement: Investments in securities Share of other comprehensive income of an associate accounted for using the equity method (913) 1,118 Net change in fair value of equity instruments at fair value through other comprehensive income 5,722 8,797 Deferred income tax related to the above (48) (56) 4,761 9,859 Other comprehensive income for the period, net of tax (21,078) 304,501 Total comprehensive income for the period, net of tax 1,759,403 1,883,351
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Dah Sing Banking Group Limited - 3 - UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION HK$’000 Note As at 30 Jun 2026 As at 31 Dec 2025 ASSETS Cash and balances with banks 7,433,715 15,321,690 Placements with banks maturing between one and twelve months 7,297,819 7,445,935 Trading securities 12 9,656,952 2,093,825 Financial assets at fair value through profit or loss 12 25,557 46,749 Derivative financial instruments 13 3,451,159 2,523,621 Advances and other accounts 14 146,984,526 144,021,359 Financial assets at fair value through other comprehensive income 15 48,181,029 44,945,013 Financial assets at amortised cost 16 35,377,540 34,008,953 Investment in an associate 9 3,597,425 2,968,045 Investments in jointly controlled entities 167,792 147,084 Intangible assets 69,715 69,715 Goodwill 220,428 220,428 Premises and other fixed assets 3,664,728 2,998,893 Investment properties 1,095,295 802,159 Current income tax assets 2,038 74 Deferred income tax assets 318,057 297,922 Total assets 267,543,775 257,911,465 LIABILITIES Deposits from banks 4,674,464 284,833 Derivative financial instruments 13 1,992,573 1,394,732 Trading liabilities 4,273,629 1,348,191 Deposits from customers 204,608,751 205,304,100 Certificates of deposit issued 289,756 887,875 Subordinated notes 4,297,783 4,274,938 Other accounts and accruals 17 9,831,292 8,086,382 Current income tax liabilities 888,217 695,533 Deferred income tax liabilities 95,510 95,686 Total liabilities 230,951,975 222,372,270 EQUITY Equity attributable to the Company’s shareholders Share capital 6,894,438 6,894,438 Other reserves (including retained earnings) 29,385,946 28,333,341 Shareholders’ funds 18 36,280,384 35,227,779 Additional equity instruments 311,416 311,416 Total equity 36,591,800 35,539,195 Total equity and liabilities 267,543,775 257,911,465
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Dah Sing Banking Group Limited - 4 - Note: 1. General information Dah Sing Banking Group Limited is a bank holding company . Its principal subsidiary is Dah Sing Bank, Limited (“DSB”), which is a licensed bank in Hong Kong . The Company together with its subsidiaries (collectively the “Group”) provide banking, financial and other related services. The immediate and ultimate holding company is Dah Sing Financial Holdings Limited, a listed company in Hong Kong. 2. Unaudited financial statements and accounting policies The information set out in this interim results announcement does not constitute statutory consolidated financial statements. Certain financial information in this interim results announcement is extracted from the statutory consolidated financial statements for the year ended 31 December 2025 (the “2025 consolidated financial statements”) which have been delivered to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Hong Kong Companies Ordinance (Cap.622), and the H ong Kong Monetary Authority (“HKMA”). The auditor’s report on the 2025 consolidated financial statements was unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its report; and did not contain a statement under section 406(2), 407(2) or (3) of the Hong Kong Companies Ordinance (Cap.622). Basis of preparation and accounting policies Except as described below, the accounting policies and methods of computation used in the preparation of the 2026 interim condensed consolidated financial statements are consistent with those used and described in the Group’s annual audited consolidated financial statements for the year ended 31 December 2025. (a) New and amendments to HKFRS Accounting Standards adopted by the Group The following amendments to HKFRS Accounting Standards that became applicable for annual reporting periods commencing on or after 1 January 2026: • Amendments to the Classification and Measurement of Financial Instruments – Amendments to HKFRS 9 and HKFRS 7 The Hong Kong Institute of Certified Public Accountants issued amendments to HKFRS 9 and HKFRS 7 to provide guidance as to when certain financial liabilities can be deemed settled when using an electronic payment system, and the amendments also provide further clarifications regarding the classification of fin ancial assets that contain contractual terms that change the timing and amount of contractual cash flows, including those arising from environmental, social and governance -related contingencies, and fi nancial assets with certain non-recourse features. These amendments have no material impact on the Group’s operations or financial statements.
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Dah Sing Banking Group Limited - 5 - 2. Unaudited financial statements and accounting policies (Continued) Basis of preparation and accounting policies (Continued) (b) New and amendments to HKFRS Accounting Standards not yet adopted Certain new and amendments to HKFRS Accounting Standards have been published that are not yet effective from 1 January 2026 and have not been early adopted by the Group: • HKFRS 18 Presentation and Disclosure in Financial Statements (effective for annual periods beginning on or after 1 January 2027) HKFRS 18 will replace HKAS 1 Presentation of financial statements, introducing new requirements that will help achieve comparability of the financial performance of similar entities and provide more relevant information and transparency to users. Its impa cts on presentation and disclosure are expected to be pervasive, in particular those related to the statement of financial performance and providing, management-defined performance measures within the financial statements. HKFRS 18 has no impact on recognition criteria or measurement bases, it only has impact on presentation of the financial statements, in particular the income statement and to a lesser extent the cash flow statement. Management is currently assessing the de tailed implications of applying the new standard. There are no other new or amendments to HKFRS Accounting Standards that are effective from 1 January 2026 or not yet effective that would be expected to have a material impact on the Group. The interim condensed consolidated financial statements are presented in thousands of Hong Kong dollars (HK$’000), unless otherwise stated , and were approved by the Board of Directors for issue on 28 August 2026. These interim condensed consolidated financial statements have not been audited.
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Dah Sing Banking Group Limited - 6 - 3. Net interest income For the six months ended 30 June HK$’000 2026 2025 Interest income Cash and balances with banks 257,865 332,777 Investments in securities 1,859,478 2,038,340 Advances and other accounts 2,735,441 2,947,737 4,852,784 5,318,854 Interest expense Deposits from banks/ Deposits from customers 1,645,526 2,275,216 Certificates of deposit issued 10,263 71,812 Subordinated notes 135,372 149,742 Lease liabilities 7,850 8,721 36,905 Others 83,505 1,882,516 2,542,396 Included within interest income - Trading securities and financial assets at fair value through profit or loss 64,081 43,778 - Financial assets at fair value through other comprehensive income 1,143,564 1,340,899 - Financial assets at amortised cost 3,645,139 3,934,177 4,852,784 5,318,854 Included within interest expense - Financial liabilities at fair value through profit or loss 42,227 12,903 - Financial liabilities not at fair value through profit or loss 1,840,289 2,529,493 1,882,516 2,542,396 In the six months ended 30 June 2026 and 2025, there was no interest income recognised on impaired assets.
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Dah Sing Banking Group Limited - 7 - 4. Net fee and commission income For the six months ended 30 June HK$’000 2026 2025 Fee and commission income Fee and commission income from financial assets and liabilities not at fair value through profit or loss - Credit related fees and commissions 86,597 88,540 - Trade finance 31,645 29,711 - Credit card 100,248 106,245 Other fee and commission income - Securities brokerage 88,867 83,861 - Insurance distribution and others 395,999 251,232 - Retail investment and wealth management services 251,366 124,822 - Bank services and handling fees 34,642 31,883 - Other fees 42,578 112,754 1,031,942 829,048 Fee and commission expense Fee and commission expense from financial assets and liabilities not at fair value through profit or loss - Handling fees and commission 87,587 96,946 - Other fees paid 5,188 5,339 92,775 102,285 The Group provides custody, trustee, corporate administration, and investment management services to third parties. The assets subject to these services are held in a fiduciary capacity and are not included in these consolidated financial statements. 5. Net trading income For the six months ended 30 June HK$’000 2026 2025 Net gain arising from dealing in foreign currencies 184,713 242,992 Net gain on trading securities 6,713 15,030 Net gain from derivatives entered into for trading purpose 1,415 12,881 Net gain arising from financial instruments subject to fair value hedge 840 534 Net (loss)/ gain on financial instruments at fair value through profit or loss (7,164) 96 186,517 271,533
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Dah Sing Banking Group Limited - 8 - 6. Other operating income For the six months ended 30 June HK$’000 2026 2025 Dividend income from investments in equity instruments at fair value through other comprehensive income, held at the end of the period - Listed investments 7 15 - Unlisted investments 1,360 1,500 Gross rental income from investment properties 13,513 8,329 Other rental income 7,737 7,981 Others 4,682 3,017 27,299 20,842 7. Operating expenses For the six months ended 30 June HK$’000 2026 2025 Employee compensation and benefit expenses (including directors’ remuneration) 1,278,227 1,227,675 Premises and other fixed assets expenses, excluding depreciation 123,644 111,847 Depreciation - Premises and other fixed assets 137,472 124,562 - Right-of-use properties 59,823 59,952 Advertising and promotion costs 36,618 36,492 Printing, stationery and postage 18,198 18,028 Others 99,152 128,519 1,753,134 1,707,075 8. Credit impairment losses For the six months ended 30 June HK$’000 2026 2025 New allowances net of allowance releases 774,328 779,270 Recoveries of amounts previously written off (50,521) (51,188) 723,807 728,082 Attributable to: - Loans and advances to customers 742,835 706,412 - Other financial assets (13,909) 28,935 - Loan commitments and financial guarantees (5,119) (7,265) 723,807 728,082
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Dah Sing Banking Group Limited - 9 - 9. Loss on deemed disposal of investment in an associate, impairment loss on investment in an associate, and investment in an associate Loss on deemed disposal of investment in an associate This is related to the R MB 13 billion 6 -year convertible bonds (the “BOCQ CB”) issued by the Group’s associate, Bank of Chongqing ( “BOCQ”), in March 2022. In the six months to 30 June 2026, holders of around RMB 1,436.3 million BOCQ CB elected to convert into 151.2 million new BOCQ’s A shares (2025: holders of R MB 0.1 million BOCQ CB elected to convert into 0. 01 million new BOCQ’s A shares). As a result, the Group's shareholding interest in BOCQ was diluted from 13.20% to 12.65%. The loss arising from such deemed disposal amounted to HK$125,311,000 (2025: Nil). Impairment loss on investment in an associate The Group assesses at the end of each reporting period whether there is any indication that the investment in BOCQ may be impaired. No impairment charge was made for the first half of 2026 and 2025. Investment in an associate On 24 June 2026, the Group acquired an additional 30,000,000 BOCQ H shares from an existing shareholder of BOCQ at market price. This acquisition restored the Group’s shareholding interest in BOCQ from 12.65% to 13.48%. The Group is considered to have significant influence over BOCQ on the basis of its representation on the board of directors of BOCQ and participation in BOCQ’s policy -making process.
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Dah Sing Banking Group Limited - 10 - 10. Taxation Hong Kong profits tax has been provided at the rate of 16.5% ( 2025: 16.5%) on the estimated assessable profit for the period. Taxation on profits in Chinese Mainland and Macau has been calculated on the estimated assessable profit for the period at the rates of taxation prevailing in these overseas markets in which the Group operates. Deferred taxation is calculated in full on temporary differences under the liability method at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. For the six months ended 30 June HK$’000 2026 2025 Current income tax - Hong Kong profits tax 252,398 244,732 - Chinese Mainland’s and Macau’s taxation 12,408 991 Pillar Two income taxes - - Deferred income tax - Origination and reversal of temporary differences 21,960 (5,516) Taxation 286,766 240,207 11. Basic and diluted earnings per share The calculation of basic earnings per share for the six months ended 30 June 2026 is based on earnings of HK$1,780,481,000 (2025: HK$1,578,850,000) and the weighted average number of 1,405,752,132 (2025: 1,405,752,132) ordinary shares in issue during the period. The calculation of diluted earnings per share for the six months ended 30 June 2026 is based on earnings of HK$1,780,481,000 (2025: HK$1,578,850,000 ) and deducting from it the dilutive effect of our share of profits in an associate amounting to HK$118,012,000 (2025: HK$103,624,000) and the weighted average number of 1,405,752,132 (2025: 1,405,752,132) ordinary shares in issue during the period after adjusting for the effect of all dilutive potential ordinary shares. The share options outstanding during the period and at the period end have no dilutive effect on the weighted average number of ordinary shares. 2026 2025 Profit attributable to shareholders (HK$’000) 1,780,481 1,578,850 Dilutive effect of share of profits in an associate (HK$’000) (118,012) (103,624) Profit used to determine diluted earnings per share (HK$’000) 1,662,469 1,475,226
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Dah Sing Banking Group Limited - 11 - 12. Trading securities and financial assets at fair value through profit or loss HK$’000 As at 30 Jun 2026 As at 31 Dec 2025 Trading securities: Debt securities: - Listed in Hong Kong 8,853 5,895 - Unlisted 9,648,099 2,087,930 9,656,952 2,093,825 Financial assets at fair value through profit or loss: Debt securities: - Listed outside Hong Kong 21,895 42,104 Investment funds: - Listed in Hong Kong 3,657 4,585 Equity securities: - Listed in Hong Kong 5 60 25,557 46,749 Total 9,682,509 2,140,574 Included within debt securities are: - Treasury bills which are cash equivalents 4,173,500 847,674 - Other treasury bills 5,474,598 1,240,256 - Government bonds 7,892 5,048 - Other debt securities 22,857 42,951 9,678,847 2,135,929 By issuers: - Central governments and central banks 9,655,991 2,092,978 - Corporate entities 25,557 46,749 - Public sector entities 961 847 9,682,509 2,140,574 As at 30 June 2026 and 31 December 2025, there were no certificates of deposit held included in the above balances.
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Dah Sing Banking Group Limited - 12 - 13. Derivative financial instruments The notional principal amounts of outstanding derivatives contracts and their fair values as at 30 June 2026 were as follows: Contract/ notional Fair values HK$’000 amount Assets Liabilities 1) Derivatives held for trading a) Foreign exchange derivatives Forward and futures contracts 562,072,063 1,803,942 (1,641,822) Currency options purchased and written 101,961,426 210,089 (211,824) Cross currency interest rate swaps 1,263,579 37,852 (37,438) b) Interest rate derivatives Interest rate swaps 10,591,044 34,647 (29,952) c) Equity derivatives Equity options purchased and written 853,604 35,409 (35,494) Total derivative assets/ (liabilities) held for trading 676,741,716 2,121,939 (1,956,530) 2) Derivatives held for hedging a) Derivatives designated as fair value hedges Interest rate swaps 33,403,642 1,329,220 (36,043) Total derivative assets/ (liabilities) held for hedging 33,403,642 1,329,220 (36,043) Total recognised derivative financial assets/ (liabilities) 710,145,358 3,451,159 (1,992,573)
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Dah Sing Banking Group Limited - 13 - 13. Derivative financial instruments (Continued) The notional principal amounts of outstanding derivatives contracts and their fair values as at 31 December 2025 were as follows: Contract/ notional Fair values HK$’000 amount Assets Liabilities 1) Derivatives held for trading a) Foreign exchange derivatives Forward and futures contracts 354,744,913 885,334 (901,626) Currency options purchased and written 75,493,445 203,027 (208,505) Cross currency interest rate swaps 5,677,762 125,471 (121,369) b) Interest rate derivatives Interest rate swaps 10,272,059 37,469 (30,421) c) Equity derivatives Equity options purchased and written 855,802 15,531 (15,554) Total derivative assets/ (liabilities) held for trading 447,043,981 1,266,832 (1,277,475) 2) Derivatives held for hedging a) Derivatives designated as fair value hedges Interest rate swaps 36,973,299 1,256,789 (117,257) Total derivative assets/ (liabilities) held for hedging 36,973,299 1,256,789 (117,257) Total recognised derivative financial assets/ (liabilities) 484,017,280 2,523,621 (1,394,732)
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Dah Sing Banking Group Limited - 14 - 14. Advances and other accounts HK$’000 As at 30 Jun 2026 As at 31 Dec 2025 Gross loans and advances to customers 142,168,828 140,158,234 Less: impairment allowances - Stage 1 (405,995) (386,587) - Stage 2 (984,546) (968,896) - Stage 3 (1,005,125) (872,355) (2,395,666) (2,227,838) 139,773,162 137,930,396 Trade bills 3,074,892 2,350,827 Less: impairment allowances - Stage 1 (2,779) (2,430) - Stage 2 - (1) (2,779) (2,431) 3,072,113 2,348,396 Other assets 4,162,060 3,761,834 Less: impairment allowances - Stage 1 (12,463) (10,814) - Stage 2 (4,031) (2,560) - Stage 3 (6,315) (5,893) (22,809) (19,267) 4,139,251 3,742,567 Advances and other accounts 146,984,526 144,021,359
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Dah Sing Banking Group Limited - 15 - 14. Advances and other accounts (Continued) (a) Impaired, overdue and rescheduled assets (i) Impaired loans HK$’000 As at 30 Jun 2026 As at 31 Dec 2025 Gross loans and advances 142,168,828 140,158,234 Less: total impairment allowances (2,395,666) (2,227,838) Net 139,773,162 137,930,396 Credit-impaired loans and advances 4,301,415 4,379,684 Less: Stage 3 impairment allowances (1,005,125) (872,355) Net 3,296,290 3,507,329 Fair value of collateral held* 3,013,088 3,322,617 Credit-impaired loans and advances as a % of total loans and advances to customers 3.03% 3.12% * Fair value of collateral is determined at the lower of the market value of collateral and outstanding loan balance. (ii) Gross amount of overdue loans As at 30 Jun 2026 As at 31 Dec 2025 Gross amount of overdue loans % of total Gross amount of overdue loans % of total Gross loans and advances to customers which have been overdue for: - six months or less but over three months 779,962 0.55 305,434 0.22 - one year or less but over six months 472,699 0.33 352,945 0.25 - over one year 2,398,408 1.69 2,760,114 1.97 3,651,069 2.57 3,418,493 2.44 Represented by: - Secured overdue loans and advances 2,752,665 3,015,122 - Unsecured overdue loans and advances 898,404 403,371 Market value of securities held against the secured overdue loans and advances 3,341,473 3,887,684 Stage 3 impairment allowances 750,807 637,862 Collateral held mainly represented pledged deposits, mortgages over properties and charges over other fixed assets such as equipment.
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Dah Sing Banking Group Limited - 16 - 14. Advances and other accounts (Continued) (a) Impaired, overdue and rescheduled assets (Continued) (iii) Rescheduled loans and advances net of amounts included in overdue loans and advances shown above HK$’000 As at 30 Jun 2026 % of total As at 31 Dec 2025 % of total Loans and advances to customers 396,929 0.28 440,101 0.31 Stage 3 impairment allowances 146,802 152,456 (iv) Trade bills As at 30 June 2026 and 31 December 2025, there were no balance of trade bills that were overdue for more than 3 months. (b) Repossessed collateral Repossessed collateral held is as follows: As at 30 Jun 2026 As at 31 Dec 2025 Nature of assets Repossessed properties 279,385 626,518 Others 6,930 2,235 286,315 628,753 Repossessed collaterals are sold as soon as practicable with the proceeds used to reduce the outstanding indebtedness of the borrowers concerned.
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Dah Sing Banking Group Limited - 17 - 15. Financial assets at fair value through other comprehensive income HK$’000 As at 30 Jun 2026 As at 31 Dec 2025 Debt securities: - Listed in Hong Kong 11,523,445 12,163,841 - Listed outside Hong Kong 23,956,897 21,958,662 - Unlisted 11,083,503 9,211,625 46,563,845 43,334,128 Equity securities: - Listed in Hong Kong 372 407 - Unlisted 1,616,812 1,610,478 1,617,184 1,610,885 Total 48,181,029 44,945,013 Included within debt securities are: - Certificates of deposit held 803,466 719,029 - Treasury bills which are cash equivalents 62,842 199,346 - Other treasury bills 5,523,945 3,254,894 - Government bonds 1,599,770 1,607,937 - Other debt securities 38,573,822 37,552,922 46,563,845 43,334,128 Financial assets at fair value through other comprehensive income are analysed by categories of issuers as follows: Debt securities: - Central governments and central banks 8,355,213 6,634,241 - Public sector entities 4,047,710 3,763,147 - Banks and other financial institutions 18,865,690 16,920,548 - Corporate entities 15,295,232 16,016,192 46,563,845 43,334,128 Equity securities: - Corporate entities 1,617,184 1,610,885 48,181,029 44,945,013
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Dah Sing Banking Group Limited - 18 - 16. Financial assets at amortised cost HK$’000 As at 30 Jun 2026 As at 31 Dec 2025 Debt securities: - Listed in Hong Kong 9,984,502 11,195,051 - Listed outside Hong Kong 15,331,218 15,204,049 - Unlisted 10,107,022 7,657,383 35,422,742 34,056,483 Less: impairment allowance - Stage 1 (40,374) (41,944) - Stage 2 (4,828) (5,586) (45,202) (47,530) Total 35,377,540 34,008,953 Included within debt securities are: - Certificates of deposit held 4,491,070 3,587,717 - Treasury bills 1,160,602 813,906 - Other debt securities 29,771,070 29,654,860 35,422,742 34,056,483 Financial assets at amortised cost are analysed by categories of issuers as follows: - Central governments and central banks 1,160,602 813,906 - Public sector entities 2,284,717 1,847,423 - Banks and other financial institutions 17,139,659 14,925,733 - Corporate entities 14,837,764 16,469,421 35,422,742 34,056,483 17. Other accounts and accruals HK$’000 As at 30 Jun 2026 As at 31 Dec 2025 Lease liabilities 333,308 354,236 Other liabilities and accruals 9,497,984 7,732,146 9,831,292 8,086,382
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Dah Sing Banking Group Limited - 19 - 18. Shareholders’ funds HK$’000 As at 30 Jun 2026 As at 31 Dec 2025 Share capital 6,894,438 6,894,438 Consolidation reserve (220,986) (220,986) Premises revaluation reserve 315,653 315,653 Investment revaluation reserve 1,701,214 1,890,386 Exchange reserve (146,262) (314,356) General reserve 700,254 700,254 Retained earnings 27,036,073 25,962,390 36,280,384 35,227,779 Proposed dividend/ dividend paid included in retained earnings 492,013 688,818 DSB as a locally incorporated bank in Hong Kong is required to maintain minimum impairment provisions in excess of those required under HKFRS in the form of regulatory reserve . The regulatory reserve, which also covers Banco Comercial de Macau, S.A. (“BCM”) and Dah Sing Bank (China) Limited (“DSB China”), is maintained to satisfy the provisions of the Hong Kong Banking Ordinance and local regulatory requirements for prudential supervision purposes . The regulatory reserve restricts the amount of reserves which can be distributed to shareholders . Movements i n the regulatory reserve are made directly through equity reserve and in consultation with the HKMA. As at 30 June 2026 and 31 December 2025, DSB does not have to earmark regulatory reserve against its consolidated general reserve or consolidated retained earnings.
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Dah Sing Banking Group Limited - 20 - 19. Contingent liabilities and commitments (a) Capital commitments Capital expenditure in respect of projects and acquisition of fixed assets at the end of the reporting period but not yet incurred is as follows: HK$’000 As at 30 Jun 2026 As at 31 Dec 2025 Expenditure contracted but not provided for 63,219 59,410 (b) Credit commitments The contract and credit risk weighted amounts of the Group’s off-balance sheet financial instruments that commit it to extend credit to customers are as follows: Contract amount As at 30 Jun 2026 As at 31 Dec 2025 Direct credit substitutes 45,467 336,890 Transaction-related contingencies 391,981 372,966 Trade-related contingencies 386,116 439,870 Commitments that are unconditionally cancellable without prior notice 57,022,084 56,639,887 Other commitments with an original maturity of: - not more than 1 year 986,386 1,359,438 - more than 1 year 4,177,839 4,195,258 Forward forward deposits placed - 200,000 63,009,873 63,544,309 Credit risk weighted amount As at 30 Jun 2026 As at 31 Dec 2025 Contingent liabilities and commitments 5,571,200 5,690,196 (c) Assets pledged As at 30 Jun 2026 As at 31 Dec 2025 Trading assets and financial investments pledged to secure liabilities 4,256,666 1,929,581 - of which: under repurchase agreements 634,230 672,418 Amount of liabilities secured 4,341,499 1,662,598 - of which: under repurchase agreements 628,183 663,439 The table above shows assets where a charge has been granted to secure liabilities on a legal and contractual basis. These transactions are conducted under terms that are usual and customary to collateralised transactions including repurchase agreements , and include assets pledged to cover short positions and to facilitate settlement processes with clearing houses.
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Dah Sing Banking Group Limited - 21 - 19. Contingent liabilities and commitments (Continued) (d) Operating lease commitments Where a Group company is the lessor, the future minimum lease payments receivable under non- cancellable building operating leases are as follows: HK$’000 As at 30 Jun 2026 As at 31 Dec 2025 Within 1 year 20,796 18,863 Between 1 and 2 years 9,560 8,720 Between 2 and 3 years 5,494 5,328 Between 3 and 4 years 1,783 2,449 Between 4 and 5 years 1,645 1,505 Later than 5 years 4,330 5,017 43,608 41,882
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Dah Sing Banking Group Limited - 22 - 20. Operating segment reporting Segment reporting by the Group is prepared in accordance with HKFRS 8 “Operating Segments”. Information reported to the chief operating decision maker, including the Chief Executive and other Executive Committee members, for the purposes of resource allocation and performance assessment, is determined on the basis of personal banking, corporate banking, treasury and global markets and banking business es in Chinese Mainland and Macau. Operating performances are analysed by business activities for local banking business, and on business entity basis for banking businesses in Chinese Mainland and Macau. Considering the customer groups, products and services of local businesses, the economic environment and regulations, the Group splits the operating segments of the Group into the following reportable segments: • Personal banking business includes the acceptance of deposits from individual customers and the extension of residential mortgage lending, personal loans, overdraft, vehicle financing and credit card services, and the provision of insurance sales and investment services. • Corporate banking business includes the acceptance of deposits from and the advance of loans and working capital finance to commercial, industrial and institutional customers, and the provision of trade financing. • Treasury and global markets activities are mainly the provision of foreign exchange services and centralised cash management for deposit taking and lending, interest rate risk management, management of investment in securities and the overall funding of the Group. • Chinese Mainland and Macau banking businesses include personal banking, corporate banking business activities provided by subsidiaries in Chinese Mainland and Macau , and the Group’s interest in a commercial bank in Chinese Mainland. • Others include results of operations not directly identified under other reportable segments, corporate investments and debt funding (including subordinated notes). For the purpose of segment reporting, revenue derived from customers, products and services directly identifiable with individual segments are reported directly under respective segments, while revenue and funding cost arising from inter -segment funding op eration and funding resources are allocated to segments by way of transfer pricing mechanism with reference to market interest rates . Transactions within segments are priced based on similar terms offered to or transacted with external parties . Inter-segment income or expenses are eliminated on consolidation. To align with the basis of reviewing business segment performance by the Group’s chief operating decision makers, interest revenue is disclosed in terms of net interest income. All direct costs incurred by different segments are grouped under respective segments . Indirect costs and support functions’ costs are allocated to various segments and products based on effort and time spent as well as segments’ operating income depending on the nature of costs incurred. Costs related to corporate activities that cannot be reasonably allocated to segments, products and support functions are grouped under Others as unallocated corporate expenses.
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Dah Sing Banking Group Limited - 23 - 20. Operating segment reporting (Continued) For the six months ended 30 June 2026 HK$’000 Personal Banking Corporate Banking Treasury and Global Markets Chinese Mainland and Macau Banking Others Inter- segment Total Net interest income/ (expenses) 1,224,646 566,026 1,043,250 203,792 (67,469) 23 2,970,268 Non-interest income/ (expenses) 837,912 99,270 54,789 142,276 20,107 (1,371) 1,152,983 Total operating income/ (expenses) 2,062,558 665,296 1,098,039 346,068 (47,362) (1,348) 4,123,251 Operating expenses (1,013,754) (253,663) (152,967) (279,257) (54,841) 1,348 (1,753,134) Operating profit/ (loss) before credit impairment (losses)/ write-back 1,048,804 411,633 945,072 66,811 (102,203) - 2,370,117 Credit impairment (losses)/ write-back (259,145) (385,884) 17,505 (94,640) (1,643) - (723,807) Operating profit/ (loss) before gains and losses on certain investments and fixed assets 789,659 25,749 962,577 (27,829) (103,846) - 1,646,310 Net (loss)/ gain on disposal of other fixed assets (4) - - 9 - - 5 Net gain on disposal of financial assets at amortised cost - - 11,665 - - - 11,665 Net gain on disposal of financial assets at fair value through other comprehensive income - - 2,485 - - - 2,485 Share of results of an associate - - - 511,385 - - 511,385 Loss on deemed disposal of investment in an associate - - - (125,311) - - (125,311) Share of results of jointly controlled entities - - - - 20,708 - 20,708 Profit/ (loss) before taxation 789,655 25,749 976,727 358,254 (83,138) - 2,067,247 Taxation (expenses)/ credit (130,400) (3,482) (161,146) (18,560) 26,822 - (286,766) Profit/ (loss) for the period 659,255 22,267 815,581 339,694 (56,316) - 1,780,481 For the six months ended 30 June 2026 Depreciation and amortisation 52,944 12,599 10,781 33,972 86,999 - 197,295 As at 30 June 2026 Segment assets 62,711,648 63,335,678 103,082,673 37,382,273 8,723,663 (7,692,160) 267,543,775 Segment liabilities 128,742,640 46,645,010 20,115,390 29,403,379 13,737,716 (7,692,160) 230,951,975
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Dah Sing Banking Group Limited - 24 - 20. Operating segment reporting (Continued) For the six months ended 30 June 2025 HK$’000 Personal Banking Corporate Banking Treasury and Global Markets Chinese Mainland and Macau Banking Others Inter- segment Total Net interest income/ (expenses) 1,173,142 536,262 966,513 200,504 (99,938) (25) 2,776,458 Non-interest income/ (expenses) 665,481 106,143 128,035 107,468 13,686 (1,675) 1,019,138 Total operating income/ (expenses) 1,838,623 642,405 1,094,548 307,972 (86,252) (1,700) 3,795,596 Operating expenses (987,890) (272,299) (160,029) (284,590) (3,967) 1,700 (1,707,075) Operating profit/ (loss) before credit impairment losses 850,733 370,106 934,519 23,382 (90,219) - 2,088,521 Credit impairment losses (269,959) (307,300) (30,143) (118,659) (2,021) - (728,082) Operating profit/ (loss) before gains and losses on certain investments and fixed assets 580,774 62,806 904,376 (95,277) (92,240) - 1,360,439 Net loss on disposal of other fixed assets (33) (3) - (2) (2) - (40) Share of results of an associate - - - 442,756 - - 442,756 Share of results of jointly controlled entities - - - - 15,902 - 15,902 Profit/ (loss) before taxation 580,741 62,803 904,376 347,477 (76,340) - 1,819,057 Taxation (expenses)/ credit (95,865) (10,040) (149,046) 12,582 2,162 - (240,207) Profit/ (loss) for the period 484,876 52,763 755,330 360,059 (74,178) - 1,578,850 For the six months ended 30 June 2025 Depreciation and amortisation 47,366 12,422 11,016 30,866 82,844 - 184,514 As at 31 December 2025 Segment assets 61,415,669 62,304,727 96,987,880 35,344,973 7,815,195 (5,956,979) 257,911,465 Segment liabilities 130,182,199 46,649,915 9,727,143 29,279,538 12,490,454 (5,956,979) 222,372,270 Geographical information Geographical segment information is based on the domicile of the legal entities within the Group with business dealing and relationship with, and services to external customers. For the six months ended 30 June 2026 and 2025, no single country or geographical segment other than Hong Kong contributed 10% or more of the Group’s assets, liabilities, operating income, or profit before taxation.
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Dah Sing Banking Group Limited - 25 - 21. Additional analysis on claims and exposures (a) Gross loans and advances to customers by industry sector classified according to the usage of loans and analysed by percentage covered by collateral HK$’000 As at 30 Jun 2026 As at 31 Dec 2025 % of gross % of gross loans and advances loans and advances Outstanding covered Outstanding covered balance by collateral balance by collateral Loans for use in Hong Kong Industrial, commercial and financial - Property development 6,059,340 51.9 5,741,066 55.8 - Property investment 20,925,597 85.7 21,258,210 87.7 - Financial concerns 5,563,471 2.1 6,617,174 3.4 - Stockbrokers 1,468,349 59.6 713,378 93.0 - Wholesale and retail trade 3,605,390 76.4 3,556,059 77.9 - Manufacturing 1,896,038 38.9 1,380,031 51.7 - Transport and transport equipment 2,400,675 77.4 2,344,458 79.5 - Recreational activities 48,241 90.6 10,837 62.9 - Information technology 537,057 4.8 648,907 5.0 - Others 5,624,222 65.6 5,898,147 60.6 48,128,380 64.8 48,168,267 65.8 Individuals - Loans for the purchase of flats in Home Ownership Scheme, Private Sector Participation Scheme and Tenants Purchase Scheme 272,404 99.9 288,885 99.3 - Loans for the purchase of other residential properties 31,929,314 99.9 32,583,511 99.8 - Credit card advances 3,607,096 - 3,683,218 - - Others 20,249,637 66.2 18,161,622 63.4 56,058,451 81.3 54,717,236 81.0 Loans for use in Hong Kong 104,186,831 73.7 102,885,503 73.9 Trade finance (Note (1)) 6,149,102 52.8 4,662,539 68.3 Loans for use outside Hong Kong (Note (2)) 31,832,895 59.6 32,610,192 55.6 142,168,828 69.6 140,158,234 69.5 Note: (1) Trade finance shown above represents loans covering finance of imports to Hong Kong, exports and re-exports from Hong Kong and merchandising trade classified with reference to the relevant guidelines issued by the HKMA. (2) Loans for use outside Hong Kong include loans extended to customers located in Hong Kong with the finance used outside Hong Kong.
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Dah Sing Banking Group Limited - 26 - 21. Additional analysis on claims and exposures (Continued) (a) Gross loans and advances to customers by industry sector classified according to the usage of loans and analysed by percentage covered by collateral (Continued) For each industry sector reported above with loan balance constituting 10% or more of the total balance of loans and advances to customers, the attributable amount of impaired loans, overdue loans, Stage 3, and Stage 1 and Stage 2 impairment allowances are as follows: HK$’000 As at 30 June 2026 Outstanding balance Impaired loans (Stage 3) Gross loans and advances overdue for over 3 months Stage 3 impairment allowances Stage 1 and Stage 2 impairment allowances Loans for use in Hong Kong Industrial, commercial and financial - Property investment 20,925,597 1,587,576 1,573,601 294,083 551,564 Individuals - Loans for the purchase of other residential properties 31,929,314 170,620 167,966 32,538 15,234 - Others 20,249,637 281,499 35,736 137,554 280,285 Loans for use outside Hong Kong 31,832,895 1,484,820 1,167,507 292,991 312,114 As at 31 December 2025 Outstanding balance Impaired loans (Stage 3) Gross loans and advances overdue for over 3 months Stage 3 impairment allowances Stage 1 and Stage 2 impairment allowances Loans for use in Hong Kong Industrial, commercial and financial - Property investment 21,258,210 1,882,098 1,721,863 269,834 471,860 Individuals - Loans for the purchase of other residential properties 32,583,511 287,240 270,738 60,300 16,029 - Others 18,161,622 282,370 34,411 140,127 261,410 Loans for use outside Hong Kong 32,610,192 887,628 507,754 104,922 425,199
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Dah Sing Banking Group Limited - 27 - 21. Additional analysis on claims and exposures (Continued) (b) Mainland activities exposures The analysis of Mainland activities exposures is based on the categories of non-bank counterparties and the type of direct exposures defined by the HKMA under the Banking (Disclosure) Rules with reference to the HKMA Return of Mainland Activities, which in cludes the Mainland activities exposures extended by DSB and its Mainland subsidiary bank only. HK$’000 As at 30 June 2026 On-balance sheet exposure Off-balance sheet exposure Total exposures 1. Central government, central government-owned entities and their subsidiaries and joint ventures (“JV”s) 4,566,927 - 4,566,927 2. Local governments, local government-owned entities and their subsidiaries and JVs 1,853,068 22,595 1,875,663 3. PRC nationals residing in Chinese Mainland or other entities incorporated in Chinese Mainland and their subsidiaries and JVs 9,417,452 595,264 10,012,716 4. Other entities of central government not reported in item 1 above 3,682,756 38,777 3,721,533 5. Other entities of local governments not reported in item 2 above 627,871 - 627,871 6. PRC nationals residing outside Chinese Mainland or entities incorporated outside Chinese Mainland where the credits are granted for use in Chinese Mainland 8,710,900 337,931 9,048,831 7. Other counterparties where the exposures are considered to be non-bank Chinese Mainland exposures 496,062 4,123 500,185 29,355,036 998,690 30,353,726 Total assets of DSB and its Mainland subsidiary bank after provision 252,922,604 On-balance sheet exposures as percentage of total assets 11.61% Note: The balances of exposures reported above include gross loans and advances and other balances of claims on the customers.
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Dah Sing Banking Group Limited - 28 - 21. Additional analysis on claims and exposures (Continued) (b) Mainland activities exposures (Continued) HK$’000 As at 31 December 2025 On-balance sheet exposure Off-balance sheet exposure Total exposures 1. Central government, central government-owned entities and their subsidiaries and JVs 4,859,609 42,566 4,902,175 2. Local governments, local government-owned entities and their subsidiaries and JVs 1,352,541 22,296 1,374,837 3. PRC nationals residing in Chinese Mainland or other entities incorporated in Chinese Mainland and their subsidiaries and JVs 9,031,117 1,032,446 10,063,563 4. Other entities of central government not reported in item 1 above 3,857,145 240,854 4,097,999 5. Other entities of local governments not reported in item 2 above 639,050 - 639,050 6. PRC nationals residing outside Chinese Mainland or entities incorporated outside Chinese Mainland where the credits are granted for use in Chinese Mainland 8,859,174 205,861 9,065,035 7. Other counterparties where the exposures are considered to be non-bank Chinese Mainland exposures 437,255 1,277 438,532 29,035,891 1,545,300 30,581,191 Total assets of DSB and its Mainland subsidiary bank after provision 244,124,613 On-balance sheet exposures as percentage of total assets 11.89%
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Dah Sing Banking Group Limited - 29 - 21. Additional analysis on claims and exposures (Continued) (c) Analysis of gross loans and advances to customers and overdue loans by geographical area Loans and advances to customers by geographical area are classified according to the location of the counterparties after taking into account the transfer of risk . The location of counterparty is the residence of counterparty, which is normally the economy in which the counterparty is legally constituted and registered. In general, risk transfer applies when an advance is guaranteed by a party located in an area which is different from that of the counterparty. The following table analyses gross loans and advances to customers, impaired loans and advances to customers (Stage 3), overdue loans and advances to customers, Stage 3, and Stage 1 and Stage 2 impairment allowances by geographical area. As at 30 June 2026 HK$’000 Gross loans and advances to customers Impaired loans and advances to customers (Stage 3) Overdue loans and advances to customers Stage 3 impairment allowances Stage 1 and Stage 2 impairment allowances Hong Kong 110,795,852 2,952,742 2,482,895 717,767 1,129,682 Chinese Mainland 16,316,184 942,539 913,360 182,409 151,462 Macau 12,121,698 406,134 254,814 104,949 81,121 Others 2,935,094 - - - 28,276 142,168,828 4,301,415 3,651,069 1,005,125 1,390,541 As at 31 December 2025 Gross loans and advances to customers Impaired loans and advances to customers (Stage 3) Overdue loans and advances to customers Stage 3 impairment allowances Stage 1 and Stage 2 impairment allowances Hong Kong 108,438,283 3,471,371 2,889,676 753,696 1,092,422 Chinese Mainland 16,983,157 646,912 267,415 77,231 156,543 Macau 12,012,614 261,401 261,402 41,428 80,283 Others 2,724,180 - - - 26,235 140,158,234 4,379,684 3,418,493 872,355 1,355,483
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Dah Sing Banking Group Limited - 30 - 21. Additional analysis on claims and exposures (Continued) (d) Loan exposure to Hong Kong commercial real estate The Group’s loans to Hong Kong commercial real estate (“HKCRE loans”) are granted to corporate customers for use in Hong Kong to finance their investments in completed and uncompleted properties in Hong Kong as well as their property developments in Hong Kong, including loans for building and construction. HKCRE loans are the aggregate of loans reported within the industry sectors of property investment and property development under Loans for use in Hong Kong after excluding loans granted to corporate customers which are not primarily engaged in property investment or development and companies which are owned and/or controlled by individual retail and private banking customers for property investment purpose. Further analysis is set out below: In millions of HK$ As at 30 Jun 2026 As at 31 Dec 2025 Outstanding balance Impaired loans Outstanding balance Impaired loans Loans for use in Hong Kong Industrial, commercial and financial - Property development 6,059 144 5,741 147 - Property investment 20,926 1,588 21,258 1,882 26,985 1,732 26,999 2,029 Of which: HKCRE loans reported within - Property development 6,059 144 5,741 147 - Property investment 17,623 1,553 17,734 1,874 23,682 1,697 23,475 2,021
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Dah Sing Banking Group Limited - 31 - 21. Additional analysis on claims and exposures (Continued) (e) International claims The information of international claims discloses exposures to foreign counterparties on which the ultimate risk lies, and is derived according to the location of the counterparties after taking into account any transfer of risk. The location of counterparty is the residence of counterparty, which is normally the economy in which the counterparty is legally constituted and registered. In general, transfer of risk from one country to another is recognised if the claims against a counterparty are guaranteed by another party in a different country or if the claims are on an overseas branch of a bank whose head office is located in a different country . Only regions constituting 10% or more of the aggregate international claims after taking into account any recognised risk transfer are disclosed. Non-bank private sector At 30 June 2026 In millions of HK$ Banks Official sector Non-bank financial institutions Non- financial private sector Total claims Offshore centres 3,234 18,050 6,821 142,258 170,363 - of which: Hong Kong 1,758 16,785 6,356 127,427 152,326 Developing Asia and Pacific 20,922 1,612 4,456 22,632 49,622 - of which: Chinese Mainland 12,386 716 4,456 16,736 34,294 Non-bank private sector At 31 December 2025 In millions of HK$ Banks Official sector Non-bank financial institutions Non- financial private sector Total claims Offshore centres 2,845 8,686 7,579 144,185 163,295 - of which: Hong Kong 2,099 7,752 7,119 129,204 146,174 Developing Asia and Pacific 29,452 1,367 4,913 22,872 58,604 - of which: Chinese Mainland 15,449 869 4,913 17,355 38,586
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Dah Sing Banking Group Limited - 32 - 22. Currency concentrations The following sets out the net foreign exchange position in USD and other individual currency that constitutes more than 10% of the total net position in all foreign currencies as at 30 June 2026 and the corresponding comparative balances. The Group did not have any structural foreign exchange position as at 30 June 2026 and 31 December 2025. The net position is calculated in the basis of the delta -weighted position of all foreign currency option contracts. At 31 December 2025 Equivalent in HK$ millions Spot assets Spot liabilities Forward purchases Forward sales Net options position Net long/ (short) position US dollars 90,589 (70,883) 219,928 (237,510) 469 2,593 Euro 1,169 (1,938) 2,525 (1,777) (348) (369) Renminbi 17,004 (15,847) 53,217 (54,273) (5) 96 Macau pataca 8,499 (9,980) - - - (1,481) Other foreign currencies 12,436 (7,650) 11,505 (16,279) 8 20 Total foreign currencies 129,697 (106,298) 287,175 (309,839) 124 859 At 30 June 2026 Equivalent in HK$ millions Spot assets Spot liabilities Forward purchases Forward sales Net options position Net long/ (short) position US dollars 89,755 (69,619) 346,244 (364,980) 437 1,837 Macau pataca 8,852 (9,482) - - - (630) Other foreign currencies 29,083 (29,757) 129,883 (129,085) (81) 43 Total foreign currencies 127,690 (108,858) 476,127 (494,065) 356 1,250
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Dah Sing Banking Group Limited - 33 - 23. Capital adequacy ratio As at 30 Jun 2026 As at 31 Dec 2025 Capital adequacy ratio - Common Equity Tier 1 19.1% 18.8% - Tier 1 19.8% 19.5% - Total 23.4% 23.1% The capital adequacy ratio represents the consolidated position of DSB (covering BCM and DSB China) computed on Basel III basis in accordance with the Banking (Capital) Rules (“BCR”). The capital adequacy ratio takes into account market risk and operational risk. DSB as a locally incorporated bank in Hong Kong is subject to the minimum capital adequacy ratio requirement under the Hong Kong Banking Ordinance . BCM is subject to Macau banking regulations and DSB China is subject to the Mainland banking regulations. 24. Leverage ratio As at 30 Jun 2026 As at 31 Dec 2025 Leverage ratio 12.0% 12.2% The leverage ratio represents the consolidated position of DSB computed on Basel III basis in accordance with the BCR on the same consolidation basis as the capital adequacy ratio. The leverage ratio is a ratio of DSB’s Tier 1 capital to its exposure measure. DSB is subject to the minimum leverage ratio requirement under the Hong Kong Banking Ordinance. 25. Liquidity maintenance ratio Six months ended 30 Jun 2026 Six months ended 30 Jun 2025 Year ended 31 Dec 2025 Liquidity maintenance ratio 59.0% 60.7% 60.8% The liquidity maintenance ratio is calculated as the simple average of each calendar month’s average consolidated liquidity maintenance ratio of DSB (covering BCM and DSB China) for the six/ twelve months of the financial year. The liquidity maintenance ratio is computed in accordance with the Banking (Liquidity) Rules. DSB as a locally incorporated bank in Hong Kong is subject to the liquidity requirement under the Hong Kong Banking Ordinance . BCM is subject to Macau banking regulations and DSB China is subject to the Mainland banking regulations.
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Dah Sing Banking Group Limited - 34 - FINANCIAL RATIOS Six months ended 30 Jun 2026 Six months ended 30 Jun 2025 Net interest income/operating income 72.0% 73.1% Cost to income ratio 42.5% 45.0% Return on average total assets (annualised) 1.4% 1.2% Return on average shareholders’ funds (annualised) 10.0% 9.2% Net interest margin 2.44% 2.32% As at 30 Jun 2026 As at 31 Dec 2025 Loan to deposit ratio 69.4% 68.0% INTERIM DIVIDEND The Directors have declared an interim dividend of HK $0.35 per share for 2026 payable on Thursday, 24 September 2026 to shareholders whose names are on the Register of Shareholders at the close of business on Wednesday, 16 September 2026. CLOSURE OF REGISTER OF SHAREHOLDERS For determining shareholders’ entitlement to receive the interim dividend: Latest time to lodge transfers 4:30 p.m. on 11 September 2026 (Friday) Closure of Register of Shareholders (both days inclusive) 14 September 2026 (Monday) to 16 September 2026 (Wednesday) Record date 16 September 2026 (Wednesday) In order to qualify for the interim dividend, all transfer documents accompanied by the relevant share certificates must be lodged with the Company’s share registrar, Computershare Hong Kong Investor Services Limited, Shops 1712 - 1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong before the above latest time to lodge transfers.
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Dah Sing Banking Group Limited - 35 - CORPORATE AND BUSINESS OVERVIEW HIGHLIGHTS Hong Kong’s economic growth in the first half of 2026 was robust, with the strong performance fueled by external trade and a recovery in domestic demand, alongside a higher domestic fixed capital formation growth. Real GDP expanded by 5.1% year on year in the first half of 2026, following growth of 3.9% in the second half of 2025 and 3.3% in the first half of 2025. The Hong Kong base rate remained steady at 4.0% throughout the first half of 2026, consistent with U.S. monetary policy trends. Meanwhile, the average short-term Hong Kong Interbank Offered Rate (“HIBOR”) remained relatively low compared to the same period in 2025. Despite the soft interest rate environment, Dah Sing Banking Group (“DSBG”) increased its net interest margin (“NIM”) to 2.44%. Loan demand in Hong Kong showed positive momentum during the first half of 2026. The Group continued to expand its customer loan book, supporting corporate customers, small and medium -sized enterprises (“SMEs”) and personal customers with flexible financing solutions while actively managing asset quality. Notably, the Group’s exposure to the Hong Kong Commercial Real Estate (“HKCRE”) sector grew by a modest 0.9%, while impaired loans within the sector declined by 16% from year-end 2025. Despite a dynamic operating environment, our Group remained responsive to evolving customer needs. DSBG reported a 13% year-on-year increase in profit attributable to shareholders, reaching approximately HK$1.8 billion. BUSINESS AND FINANCIAL REVIEW DSBG’s interim results in 2026 reflect a satisfactory performance. Net interest income grew by 7% for the six months ended 30 June, driven by a robust NIM of 2.44%, a 12 basis point increase from the same period in 2025, primarily due to an improved CASA ratio that effectively managed funding costs . Non-interest income rose by 13%, primarily driven by a 29% increase in net fee and commission income. Supported by Hong Kong policy measures and strong cross-border wealth inflows, our wealth management business continues to grow. The Group maintained disciplined cost control during the period, with operating expenses increasing mildly by 3%. The cost -to-income ratio improved to 42.5% year on year, down from 45.0%. In the first half of 2026, credit impairment charges decreased by 1%. Although credit costs remained elevated at HK$724 million, our strong capital and liquidity buffers provide resilience. We maintained prudent provisioning for the HKCRE sector while continuing our efforts to improve asset quality. Consequently, the impaired loan ratio narrowed by 9 basis points to 3.03% at end- June 2026, compared to 3.12% at year -end 2025, predominantly driven by loan growth, an improvement in credit quality in our retail banking business, and impaired loan charge -offs and repayments in o ur commercial banking business. Our Personal Banking business recorded strong results, with operating income increasing by 12% and operating profit after impairment growing 36%. This performance was driven by a 26% rise in non -interest income and a 4% decline in credit impairment charges, supported by a robust wealth management business and improved credit quality. Our Corporate Banking business recorded a decline in net profit despite an 11% rise in operating profit before impairment, as the increase in operating income was offset by higher credit impairment charges. The 26% year-on-year increase in credit costs was primarily due to ongoing account downgrades and collateral revaluations. Our Treasury and Global Markets business delivered a solid performance in the first half of the year. Operating profit before impairment grew by 1%, driven by a n 8% increase in net interest income and a 4% reduction in operating expenses. Operating profit after impairment increased by 6%, benefiting from a write -back of credit impairment charges due to improved macro-economic factors. Meanwhile, banking subsidiaries in Chinese Mainland and Macau reported a 186% increase in operating profit before impairment , driven by growth across both net interest and non - interest generating businesses. However, these subsidiaries reported an operating loss after impairment, although the loss narrowed by 71% year on year due to a 20% reduction in credit impairment charges. Our associate, Bank of Chongqing, delivered a 16% increase in our share of its profit. As a result, the overall Chinese Mainland and Macau Banking business reported a 3% growth in profit before tax. DSBGʼs consolidated profit for the first half of 2026 represented an annualised return on assets of 1.4% and an annualised return on shareholdersʼ funds of 10.0%, compared to 1.2% and 9.2% respectively in the same period of the prior year. As at 30 June 20 26, Dah Sing Bank ’s consolidated Common Equity Tier 1 ratio and total consolidated capital adequacy ratio were 19.1% and 23.4% respectively, and its average liquidity maintenance ratio for the period was at 59.0%.
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Dah Sing Banking Group Limited - 36 - PROSPECTS Over the years, Hong Kong has successfully navigated economic crises, global pandemics, and local commercial real estate downturns, and has built its standing as a leading international financial centre. Throughout these cycles, our Group has maintained a prudent approach to ensure long-term sustainability and resilience while selectively pursuing strategic opportunities. Recently, the Group slightly increased its equity stake in Bank of Chongqing to approximately 13.5%, to partially offset the dilution in our interest due to Bank of Chongqing’s prior share issues and partial conversion of its convertible bonds. Meanwhile, our robust capital and liquidity position reinforces our resilience against stress in the HKCRE market. Over the past six months, Hong Kong’s Grade -A office leasing market and vacancy levels have shown signs of improvement, buoyed by increased activities across financial markets. Looking ahead, Hong Kong will continue to leverage its unique advantages in global connectivity amidst the current geopolitical landscape. Benefiting from A I-driven development, expanding investments from Chinese Mainland enterprises, and improving consumer sentiment, Hong Kong’s long -term outlook remains supportive. Our Group continues to maintain a robust financial position and is well -equipped to capitalise on business opportunities and withstand unexpected market challenges. We will maintain a prudent and consistent approach in risk management to navigate ongoing market uncertainties.
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Dah Sing Banking Group Limited - 37 - COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE During the six months ended 30 June 2026, the Company has applied the principles and complied with the code provisions set out in the Corporate Governance Code under Part 2 of Appendix C1 of the Listing Rules. CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The Company has adopted its own code of conduct for directors’ securities dealing (“Directors’ Dealing Code”) on terms no less exacting than the prevailing required standard set out in the Model Code for Securities Transactions by Directors of Listed Issuers (“Model Code”) under Appendix C3 of the Listing Rules. Following specific enquiry, the Directors of the Company confirmed that they had complied with the required standard set out in the Model Code and the Directors’ Dealing Code throughout the six months ended 30 June 2026. UNAUDITED FINANCIAL STATEMENTS The financial information in this interim results announcement is unaudited and does not constitute statutory financial statements. REVIEW OF FINANCIAL STATEMENTS The Audit Committee has reviewed with Management the accounting principles and practices adopted by the Group and discussed internal controls and financial reporting matters including a review of the unaudited interim financial statements of the Group for the six months ended 30 June 2026. PURCHASE, SALE OR REDEMPTION OF SECURITIES There was no purchase, sale or redemption by the Company, or any of its subsidiaries, of listed securities of the Company (including sale of treasury shares, if any) during the six months ended 30 June 2026. HUMAN RESOURCES There have been no material changes to the information disclosed in the Company’s 2025 Annual Report in respect of the number and remuneration of employees, remuneration policies and training schemes. INTERIM RESULTS ANNOUNCEMENT AND INTERIM REPORT This announcement is published on the websites of Hong Kong Exchanges and Clearing Limited (“HKEX”) at www.hkexnews.hk and Dah Sing Bank at www.dahsing.com. The 2026 Interim Report of the Group containing all the information required by the Listing Rules will be published on the websites of HKEX and Dah Sing Bank in due course. Printed copies of the 2026 Interim Report will be sent to shareholders who have elected to receive printed versions of the Company’s corporate communications before the end of September 2026. BOARD OF DIRECTORS As at the date of this announcement, the Board of Directors of the Company comprises Mr. David Shou -Yeh Wong (Chairman), Mr. Hon-Hing Wong (Derek Wong) (Vice Chairman, Managing Director and Chief Executive), Mr. Gary Pak-Ling Wang and Mr. Nicholas John May hew (Deputy Chief Executive) as Executive Directors; Mr. Jack Chak - Kwong So, Mr. Robert Tsai -To Sze, Mr. Blair Chilton Pickerell, Mr. Paul Franz Winkelmann, Ms. Nancy Ha -Fong Chan and Mr. Kin-Sang Cheung (Alex Cheung) as Independent Non-Executive Directors. By Order of the Board Richard Tsung-Yung Li Company Secretary Hong Kong, Friday, 28 August 2026