The consolidated profit after tax of Shanghai Commercial Bank Limited for the first half of 2021 was HK$1,447 million, a year-on-year increase of HK$168 million or 13.1%, largely attributable to a 10.7% surge in net fee and commission income mainly driven by the satisfactory growth in securities brokerage and investment products income, and a lower impairment charge. Benefitted from lower interest expenses on customer deposits, net interest income increased by 3.4% while the average net interest margin for the period narrowed by six basis points to 1.67% from 1.73% for the same period last year.
The Bank’s total comprehensive income attributable to equity holders for the first half ended 30 June 2021 at HK$1,500 million was HK$669 million, or 80.5% higher than that for the same period last year, mainly due to the mark-to-market valuation gain in equity investment. The overall loan-to-deposit ratio dropped from 57.2% at the end of 2020 to 56.0% at the end of June 2021 as loans and advances reduced by 1.2% to HK$100.1 billion while total customer deposits increased by 1.1% to HK$179.8 billion.
Total assets increased by 2.1% to HK$231.6 billion and shareholders’ funds grew by 3.7% to HK$33.6 billion when compared to the corresponding figures at the end of 2020. Returns on average total assets and average equity were at 1.3% and 8.8% respectively. The Bank’s capital and liquidity levels remained robust, with capital adequacy ratio and common equity Tier 1 capital ratio as of 30 June 2021 at 20.6% and 17.4% respectively and the average liquidity maintenance ratio for the period at 59.9%.
Shanghai Commercial Bank Press Release