According to the Zhitong Finance App, BOCHK (02388) announced its 2023 annual results. The Group achieved net operating income of HK$65.498 billion during the period, up 20.81% year on year; profit attributable to the company's shareholders and other equity instrument holders was HK$34.115 billion, up 24.83% year on year; basic profit per share was HK$3.095; it is proposed to pay a final dividend of HK$1.145 per share.

According to the announcement, net interest income after accounting for capital income or costs of foreign exchange swap contracts increased year by year, mainly due to the Group seizing the opportunity of rising market interest rates, actively managing assets and liabilities, driving the widening of interest spreads on loan deposits, and an increase in net interest-free capital contributions, which led to an increase in net interest-free capital contributions. Net service fees and commission income declined year-on-year, mainly due to the quiet climate in the investment market, the decline in imports and exports, and weak demand for trade and credit. The Group continues to optimize resource allocation and cost structure, implement low-carbon operations, and operating expenses have decreased year by year. Furthermore, net provisions for impairment provisions increased.

Net interest income for 2023 was HK$51,078 million. Net interest income after accounting for capital income or costs of foreign exchange swap contracts was HK$54.487 billion, up 28.8% year-on-year, mainly driven by growth in average interest-bearing assets and widening net interest spreads. Average interest-bearing assets increased by HK$229.847 billion or 7.4% year-on-year. When the capital income or cost of foreign exchange swap contracts is included, the net interest spread is 1.63%, an increase of 27 basis points year-on-year, mainly due to the Group seizing the opportunity of rising market interest rates and actively managing assets and liabilities, which widens loan deposit spreads and increases net interest-free capital contributions.

In 2023, operating profit reached a new high since listing. The main business outperformed the market, and financial indicators were steady and improving. Customer loans increased by 3.3% to HK$1702.302 billion, and customer deposits increased 5.3% to HK$2503.81 billion, all higher than the market growth rate. Profit after tax for the year was HK$34.857 billion, up 28.0% year on year. The capital and liquidity ratio remains adequate, and asset quality continues to be superior to the average of Hong Kong peers.

As of the end of 2023, the Group's total assets were HK$3868.783 billion, up 5.5% from the end of 2022. Total customer deposits amounted to HK$2503.81 billion and total customer loans of HK$1702.302 billion, up 5.3% and 3.3% respectively from the end of 2022, which was superior to the market. Both operating income and operating profit reached record highs. Financial and risk indicators remained steady. Liquidity indicators such as the total capital ratio and Tier 1 capital ratio were superior to the market average, and liquidity indicators such as the liquidity coverage ratio and stable net capital ratio remained stable and above the level of regulatory requirements; the ratio of specific categories or impairment loans was 1.05%, and the asset quality was superior to the market average; the cost-to-revenue ratio was 25.35%, which was better than the market average.