Dahsing Banking Group (02356.HK) announced on August 30th that its net interest income in the first half of 2024 increased by 12%, benefiting from the rise in net interest margin and a moderate increase in average loan balance compared to the same period last year. The net interest margin increased from 1.93% in the first half of 2023 to 2.09%, thanks to higher overall income assets and prudent management of funding costs. Non-interest income increased by 77%, mainly due to growth in net service fees and commission income, as well as net trading income.
In the first half of 2024, the Group benefited from higher asset yield, but the increase in funding costs and impairment expenses partially affected overall performance. The Group's attributable profit to shareholders increased by 26% to HKD 1.4 billion, with a positive contribution of HKD 0.43 billion from Bank of Chongqing, and a significant decrease in impairment on investments in Bank of Chongqing. The board of directors announced a mid-year dividend of HKD 0.27 per share for 2024.
As of June 30, 2024, the Group's Tier 1 capital adequacy ratio and overall capital adequacy ratio for its banking business were 16.7% and 20.8% respectively, while the liquidity coverage ratio was 64.7%. The loan-to-deposit ratio was 66.5%, compared to 68.2% at the end of last year.
