Slides
Page 1
Dah Sing Financial Group 2026 Interim Results 28 August 2026
Page 2
Performance Highlights • Increase in net interest income, driven by expansion in net interest margin • Substantial growth in fee and commission income, driven by robust wealth management business • Mild decline in credit impairment charges • Solid growth in profit attributable to shareholders • DSBG 2026 interim dividend of HK$0.35 per share (1H25: HK$0.31); DSFH 2026 interim dividend of HK$1.20 per share (1H25: HK$1.16) 2
Page 3
Dah Sing Banking Group (2356) HK$’ million 1H 2026 1H 2025 Change Net interest income 2,970 2,776 +7% Net fee and commission income 939 727 +29% Net trading income and other income 214 293 -27% Total operating income 4,123 3,796 +9% Operating expenses (1,753) (1,707) +3% Credit impairment losses (724) (728) -1% Operating profit after credit impairment losses 1,646 1,360 +21% Profit shared from BOCQ 511 443 +16% Impairment loss on investment in BOCQ - - Profit attributable to shareholders 1,780 1,579 +13% Basic earnings per share ($) 1.27 1.12 Dividend per share ($) 0.35 0.31 3
Page 4
Dah Sing Financial Holdings (0440) HK$’ million 1H 2026 1H 2025 Change Net interest income 2,998 2,815 +6% Net fee and commission income 932 720 +29% Net trading income, insurance service result after net insurance finance expense and other operating income 389 577 -33% Total operating income 4,318 4,112 +5% Operating expenses (1,805) (1,782) +1% Credit impairment losses (724) (729) -1% Operating profit after credit impairment losses 1,789 1,602 +12% Profit shared from BOCQ 511 443 +16% Impairment loss on investment in BOCQ - - Profit attributable to shareholders 1,458 1,406 +4% Basic earnings per share ($) 4.57 4.41 Dividend per share ($) 1.20 1.16 4
Page 5
Dah Sing Banking Group 5
Page 6
Personal Banking 6 • Net interest income grew 4%, driven by loan volume expansion and disciplined funding cost control • Non-interest income rose 26%, primarily led by stronger wealth management revenue • 23% growth in operating profit before credit impairment, supported by robust top-line performance and modest 3% rise in operating expenses • 4% reduction in credit impairment charges, attributable to prudent credit cost management and more stable retail credit conditions • Revenue growth combined with lower credit impairment charges contributed to 36% growth in profit
Page 7
Corporate Banking 7 • Net interest income grew 6%, mainly driven by lower funding cost and higher average loan balance • Non-interest income declined 6%, primarily attributable to lower fee and commission and trading income • 11% growth in operating profit before credit impairment, supported by revenue growth and disciplined cost control • Provisions rose 26%, mainly attributable to credit rating downgrades for certain accounts and collateral revaluations • Net profit lower by 58%, resulting from higher impairment charges amid continued challenging credit conditions
Page 8
Treasury and Global Markets 8 • Operating income rose 0.3%, primarily driven by 8% higher net interest income partially offset by 57% lower non-interest income • Decline in trading income, due to higher net cost of funding swap activities • 1% growth in operating profit, with higher operating income and 4% decrease in expenses • Credit impairment write-backs, supported by macro-economic improvements and sound underlying credit quality of investment portfolio • Conservative liquidity management, with average Liquidity Maintenance Ratio maintained well above statutory requirement
Page 9
Chinese Mainland and Macau 9 Chinese Mainland: • Increase in net interest income, driven by mild loan growth and improvement in net interest margin • Substantial increase in non-interest income, primarily due to strong growth in treasury and cross-border related business • 16% growth in profit share from BOCQ Macau: • Decline in net interest income and non-interest income, impacted by macroeconomic headwinds • Net loss widened slightly, due to lower revenue and elevated credit costs
Page 10
Dah Sing Financial Holdings 10
Page 11
Insurance and Investment Operations 11 • Insurance and investment operations delivered robust growth in both insurance service result and investment returns, driven by disciplined underwriting and strong investment performance • Growth in insurance revenue with 11% higher Gross Premiums Written • Favourable impact on claims liabilities, resulting from increased discount rate assumption • Strong underwriting discipline, demonstrated by Combined Ratio of 90% • Prudent risk selection and reasonable pricing commensurate with underlying risk exposures
Page 12
Insurance and Investment Operations 12 • Solid solvency and capital position, providing ample capacity to support business expansion • Strong investment returns generated from our insurance and group investment businesses were reflected through both the Income Statement and Other Comprehensive Income (OCI) • MTM and disposal gains reported under OCI grew by 1.8x to HK$1.1 billion • The total Assets Under Management (for investment purposes) of our insurance and group investment businesses grew by 11% to HK$13.1 billion
Page 13
Financial Overview 13
Page 14
2,776 3,052 2,970 727 975 939 293 92 214 3,796 4,119 4,123 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 1H25 2H25 1H26 HK$ million Net trading income and other operating income Net fee and commission income Net interest income Income from core businesses 74% 72% DSBG’s Operating Income and Net Interest Margin 14 73% 2.41% 2.32% 2.49% 2.44% 1.6% 1.8% 2.0% 2.2% 2.4% 2.6% 2025 average 1H25 2H25 1H26 Net interest margin
Page 15
DSBG’s Operating Expenses and Credit Impairment Losses 15 728 1,055 724 0 200 400 600 800 1,000 1,200 1H25 2H25 1H26 HK$ million Credit impairment losses 1,707 1,739 1,753 1,680 1,690 1,700 1,710 1,720 1,730 1,740 1,750 1,760 1H25 2H25 1H26 HK$ million Operating expenses
Page 16
3.01% 3.21% 2.75% 2.85% 3.21% 3.12% 3.12% 3.03%3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 31 Dec 24 30 Jun 25 31 Dec 25 30 Jun 26 Overdue and rescheduled loans ratio Impaired loan ratio Asset quality ratios 44% 42% 41% 14% 15% 15% 14% 15% 16% 5% 5% 6% 24% 23% 22% 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 30 Jun 25 31 Dec 25 30 Jun 26 HK$ million Loans for use outside HK Trade finance and trade bills Credit card advances and other loans to individuals Other commercial lending Residential and commercial property lending Gross Advances to Customers and Trade Bills, and Asset Quality 16 Gross advances to customers and trade bills Change relative to 2025 year-end: +1.9% 141.5 bn 142.5 bn 145.2bn 43.1% 39.6% 60.9% 58.1% 56.9% 60.4% 39.1% 41.9% 1,533 1,919 2,230 2,398 0 500 1,000 1,500 2,000 2,500 31 Dec 24 30 Jun 25 31 Dec 25 30 Jun 26 HK$ million Stage 3 Stage 1 & 2 ECL allowances
Page 17
Hong Kong Commercial Real Estate 17 Note: HKCRE refers to loans to corporate customers for use for property development and investment in Hong Kong 24,469 23,475 23,682 22,800 23,000 23,200 23,400 23,600 23,800 24,000 24,200 24,400 24,600 30 Jun 25 31 Dec 25 30 Jun 26 HK$ million Total loan exposure to HKCRE 2,177 2,021 1,697 0 500 1,000 1,500 2,000 2,500 30 Jun 25 31 Dec 25 30 Jun 26 HK$ million Impaired HKCRE loans
Page 18
Key Return Indicators 18 1.2% 1.4% 9.2% 10.0% 0% 2% 4% 6% 8% 10% 12% 1H 2025 1H2026 Return on average total assets of DSBG Return on average shareholders' funds of DSBG Return on average total assets and shareholders’ funds of DSBG 1.47 1.76 1.12 1.27 5.25 6.45 4.41 4.57 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 2024 2025 1H 2025 1H 2026 HK$ Basic EPS of DSBG Basic EPS of DSFH Basic EPS of DSBG and DSFH
Page 19
Capital Adequacy and Liquidity 19 60.7% 60.8% 59.0% 0% 10% 20% 30% 40% 50% 60% 70% 30 Jun 25 31 Dec 25 30 Jun 26 Liquidity maintenance ratio 18.2% 18.8% 19.1% 0.7% 0.7% 0.7% 3.6% 3.6% 3.6% 22.5% 23.1% 23.4% 0% 5% 10% 15% 20% 25% 30 Jun 25 31 Dec 25 30 Jun 26 Capital adequacy ratio CET1 Additional T1 T2
Page 20
Conclusions 20
Page 21
Conclusions 21 • Strong revenue generated from both net interest income and non- interest income businesses, benefiting from improved margin and sustained wealth management demand • Higher net interest margin, attributable to improved CASA ratio, and well-controlled funding costs • Prudent credit risk management, resulting in lower impaired loan ratio and reduced impairment charges, while continuing to manage risks in Hong Kong commercial real estate sector • Stable dividend payout ratio, supported by strong underlying profitability and resilient business growth • Sound capital and liquidity positions, underpinning long-term sustainable growth and operational stability