SUN HUNG KAI & CO. LIMITED 
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• Operating earnings saw a healthy increase of 22% over 2012 to HK$1,625.9 million.
• Total revenue rose by 23% to HK$4,575.5 million with both interest income and brokerage and commission revenue witnessing positive growth.
• Profit attributable to owners of the Company amounted to HK$1,051.6 million.
• Final dividend of HK12 cents per share, including the interim dividend paid, total dividends amounted to HK22 cents per share for the whole year (2012: HK22 cents).
• Basic earnings per share was HK49.4 cents (2012: HK48.9 cents).
• Loan books balance increased by 23% to HK$16.3 billion when compared with 2012.
December 2013.
2013 marks an encouraging year of continued development for the Group. Despite persistent market volatility, and concerns about a possible slowdown in Mainland China, both Sun Hung Kai Financial ("SHKF") and United Asia Finance ("UAF") performed satisfactorily. The Group recorded a profit before tax of HK$1,720.2 million in 2013 (2012: HK$1,700.3 million). Profit attributable to owners of the Company amounted to HK$1,051.6 million (2012: HK$1,036.4 million), and earnings per share was HK49.4 cents (2012: HK48.9 cents).
The Board has recommended a final dividend of HK12 cents per share (2012: HK12 cents per share). Together with the interim dividend of HK10 cents per share, total dividends for the year are HK22 cents per share (2012: HK22 cents per share).
Mr Lee Seng Huang, Group Executive Chairman of Sun Hung Kai & Co. Limited, said: "We celebrate our 45th anniversary in 2014 and I am confident that the financial platform we have built over the years positions us well to capture the growth in the wealth of the Chinese consumer that is underway. We will
continue to take a balanced approach and stay true to our core values of excellence, integrity, prudence, professionalism and innovation."
UAF's Mainland China business has been a key growth driver for the Group. In 2013, it expanded into three new cities - Shanghai, Fuzhou, and Harbin, and obtained two new licences for Qingdao and Nanning. As of 31 December 2013, UAF had a total of 105 branches across 12 cities/provinces in Mainland China, compared with 79 branches in nine cities/provinces at the end of December 2012.
UAF's 150th branch was opened in October 2013. Its total loan book surpassed HK$10 billion, an
increase of 21% compared with 2012, and continues to grow at an encouraging rate.
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The Wealth Management and Brokerage business operated by SHKF continues to gain traction in diversifying its product range with a solid rebound in revenue. Brokerage and commission revenue grew by 20%. Commissions from wealth management products increased more rapidly by 38% and accounted for 41% of the segment's total commission income. The growth was driven by the enhanced penetration of our customer base, as well as by the changing mix of our sales force in favour of investment consultants who specialise in wealth management products. Our strategy is to develop a diverse range of revenue streams that are less dependent upon equity market volumes, making the business and customers more resilient in the face of economic cycles.
The Capital Markets division as a whole performed satisfactorily with a strong revenue increase of
97% to HK$464.4 million in 2013, despite a difficult market environment for much of the year. The onset of tighter liquidity as well as a volatile IPO market generated strong demand from corporate customers seeking debt financing. Our structured loan portfolio increased to a record high during the year.
The Group's diversified revenue streams encompass both interest income (accounting for 83% of turnover), and non-interest income in the form of commissions and fees, and other revenue. Leveraging on its expertise and client network, the Group has built substantial loan books in the SHKF business over the years. Together with the UAF business, the diversified loan portfolio has surpassed HK$16 billion across consumer finance, margin financing, and structured finance for corporate customers. Moreover, the quality of commission income has strengthened as it has become less dependent on the equity markets.
In addition to delivering sustained profitability, the Group's commitment to balanced growth and upholding our social responsibility was recognised by the Gold Award in The Asset's Excellence in Management and Corporate Governance Awards 2013. The Group was also named a 10 Years Plus Caring Company by the Hong Kong Council of Social Services recognising the Group's continuous support and contribution as a responsible corporate citizen.
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About Sun Hung Kai & Co. Limited
Sun Hung Kai & Co. Limited (the "Company") has been one of the leading financial institutions in Hong
Kong with its foundation dating back to 1969.
Listed on the Hong Kong Stock Exchange in 1983 (Stock Code: 86), the Company, through its subsidiaries, including Sun Hung Kai Financial Limited and United Asia Finance Limited, offers customised financial solutions for retail, corporate and institutional clients.
The Company, through its subsidiaries, has four core business segments, Wealth Management and Brokerage, Capital Markets, Consumer Finance and Principal Investments. It has an extensive branch and office network of more than 170 locations in Hong Kong, Mainland China and Macau.
The Company currently has more than HK$13.4 billion* in shareholders equity. For more information, please visit www.shkco.com.
* Figures as of 31 December 2013
For enquiries: Juliana Chan | (852) 3920 2511 | juliana.chan@shkco.com |
Maggie Chan | (852) 3920 2513 | maggie.chan@shkco.com |
Rona Chau | (852) 3920 2509 | rona.chau@shkco.com |
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