深度-毕马威-2021年香港银行业报告（英文）-2021.6-92页_2mb

报告摘要

Hong Kong Banking Report 2021 Summary

Core Content

This report provides an analysis of the performance and outlook for Hong Kong's banking sector in 2020 and beyond, focusing on key challenges and opportunities. It highlights the resilience of the sector amid the economic impacts of the pandemic, the ongoing transformation efforts, the role of virtual banks, and the regulatory and financial landscape.

Main Points and Key Information

1. Economic Impact and Sector Resilience

The Covid-19 pandemic significantly affected Hong Kong's economy, which contracted by 6.1% in 2020, compared to 1.2% in 2019.
Despite the economic downturn, Hong Kong's banking sector remained resilient, with a growth in balance sheets (total assets increased by 8.8% to HK$22.9 trillion).
Operating profits declined by 19.3%, from HK$287 billion in 2019 to HK$232 billion in 2020, mainly due to low interest rates and economic uncertainty.

2. Net Interest Margin (NIM) Decline

NIM for all licensed banks dropped by 41 basis points, from 1.71% in 2019 to 1.38% in 2020.
Hang Seng Bank maintained the highest NIM at 1.73%, while Standard Chartered Bank (SCB) had the highest cost-to-income ratio (over 60%).
Nanyang Commercial Bank was the only top 10 bank to reduce its cost-to-income ratio, mainly through IT cost cuts.

3. Cost Management and Staffing Trends

Cost-to-income ratio increased to 50.95% in 2020, up from 44.26% in 2019.
Total operating costs slightly rose to HK$205 billion, but staff costs decreased by 2.6%.
In early 2021, HSBC, Citibank, Standard Chartered, and Goldman Sachs announced plans to increase headcount in client-facing areas, especially in wealth management and private banking.

4. Loan Growth and Credit Quality

Total loans and advances increased by 3.4% in 2020, compared to 6.4% in 2019.
Commercial loans and mortgages dominated the loan portfolio, making up 89.3% of total loans.
Impaired loan ratio increased to 0.71% in 2020, up from 0.5% in 2019, indicating credit quality concerns.
CITIC had the highest impaired loan ratio (1.65%), while BOC (HK) had the lowest (0.29%).
ICBC (Asia) showed improvement in credit quality, reducing its impaired loan ratio by 13 basis points.

5. Virtual Banks

Eight virtual banks began operations in 2020, with no profit yet due to heavy investment in infrastructure and marketing.
Total deposits of virtual banks reached HK$15.8 billion, accounting for 0.11% of the banking sector's total deposits.
ZA Bank and Mox Bank had the largest deposit shares at 38% and 33%, respectively.
Virtual banks are expected to introduce more products and services (e.g., credit cards, loans) to attract customers and build sustainable models.

6. Regulatory and Compliance Challenges

Regulatory focus has shifted to digital sales conduct, model governance, and Basel III reforms.
LIBOR phase-out is imminent, requiring banks to transition to alternative benchmarks.
Operational tax changes offer opportunities for digitisation and process simplification.
ESG (Environmental, Social, and Governance) is gaining importance in banking, with the HKMA encouraging its integration into risk management frameworks.

7. Growth Prospects and Future Outlook

The GBA Wealth Management Connect is a key opportunity for the sector.
Economic recovery in 2021 is expected, with vaccine rollouts and border re-openings playing a critical role.
Virtual banks are anticipated to continue competing on pricing and digital innovation.
Credit risk management remains a challenge, with banks needing to update ECL models and monitor macroeconomic changes.

Conclusion

Hong Kong's banking sector, while facing reduced profitability and lower NIMs, has shown resilience and adaptability in the face of the pandemic. The introduction of virtual banks is a new and exciting development, although they are yet to establish clear market leadership. Regulatory shifts, digital transformation, and ESG integration are shaping the future of the sector. As the economy begins to recover, banks are expected to focus on cost management, product diversification, and enhanced credit risk assessment to sustain growth and profitability.