HONG KONG MONETARY AUTHORITY Annual Report 1996

TABLE 9: PERFORMANCE RATIOS OF THE BANKING SECTOR(1)

 

  All AlsAll local banks
(%) 1995199619951996
         
PROFITABILITY        
         
Operating profit to shareholders' funds n.a. n.a. 18.79 18.16
Post-tax profit to shareholders' funds n.a. n.a. 17.23 16.18
Return on assets (operating profit) 0.78 0.82 1.99 2.00
Return on assets (post-tax profit) 0.70 0.73 1.82 1.78
Net interest margin 1.02 1.14 2.49 2.58
Cost-income ratio 41.8 43.1 38.6 37.1
 
ASSET QUALITY(2)        
         
Bad debt charge to total assets 0.05 0.09 0.08 0.18
Provisions(3) to total loans 0.79 0.85 2.04 1.92
Classified loans(4) to total loans:        
Gross 0.89 1.09 2.85 2.68
Net of specific provisions . 0.55 0.73 1.77 1.71
Net of all provisions 0.10 0.24 0.81 0.76
Overdue loans(5) to total loans 0.98 1.10 2.55 2.44
Credit card charge-off ratio(6) n.a. 2.3 n.a. n.a.
 
CAPITAL ADEQUACY        
         
Equity to assets ratio n.a. n.a. 11.0 10.5
Capital adequacy ratio(7) n.a. n.a. 17.5 17.8
 
LIQUIDITY        
         
Loan to deposit ratio (all currencies) 169.2 160.8 57.0 59.4
HK dollar loan to deposit(8) ratio 105.6 103.3 70.2 71.1
 
             

 

(1) figures relate to HK office(s) only except where otherwise stated.

(2) ratios of provisions, classified loans and overdue loans are on a combined basis (i.e the combined position of the HK office(s) & overseas branches).

(3) amount of provisions outstanding.

(4) classified loans are those graded as "substandard", "doubtful" or "loss".

(5) loans and bills overdue for more than 90 days and rescheduled loans.

(6) based an a monthly credit card survey of 17 Als since Jan 1996.

(7) consolidated ratios for all locally incorporated institutions.

(8) Include swap deposits.

n.a. : not available

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