#1典 用 恒生銀行 HANG SENG BANK#22021 Annual Results R 恒生銀行 HANG SENG BANK#3Forward-looking Statements This presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Hang Seng. These forward-looking statements represent Hang Seng's expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Past performance cannot be relied on as a guide to future performance. 的 恒生銀行 HANG SENG BANK#42021 Annual Results Business Overview Segment Performance Hang Seng China Financial Overview 2022 Outlook 的 恒生銀行 HANG SENG BANK#5Business Overview 命 恒生銀行 HANG SENG BANK SALE www10m ANDO thail 8220 樂茶 典 恒生銀行 HANG SENG BANK#62021: A Year of Continuity and Change Solid balance sheet growth ■ Healthy increase in non-interest income ■Strong momentum in mortgage, trade and green loans portfolios Advanced digital developments Focused on ESG to support transition to a low-carbon economy Strong wealth management businesses in first half but dampened investor and business sentiment from Omicron and increased refinancing risk in the Mainland commercial real estate sector in second half Higher expected credit losses based on uncertainties in mainland China real estate sector despite stable quality of lending portfolio 的 恒生銀行 HANG SENG BANK#7Financial Overview HK$ Mn Net interest income 2021 23,822 vs 2020 11% net interest margin (%) 1.49 24bp Non-interest income 9,360 2% Net operating income before change in expected credit losses & other credit impairment charges 33,182 8% Change in expected credit losses & other credit impairment charges 2,807 3% Net operating income 30,375 9% Operating expenses 14,134 7% Operating profit 16,231 19% excl. change in expected credit losses & other credit impairment charges 19,038 17% Profit before tax 16,385 16% Profit attributable to shareholders 13,960 16% Earnings per share (HK$) 6.93 17% Dividends per share (HK$)* Cost efficiency ratio (%) *4th interim dividend for 2021: HK$1.80/share 5.10 0.40 42.6 6.0 pp Favourable Unfavourable 帆 恒生銀行 HANG SENG BANK#82021 Annual Results Business Overview Segment Performance Hang Seng China Financial Overview 2022 Outlook 的 恒生銀行 HANG SENG BANK#9Segment Performance Wealth and Personal Banking 苑 恒生銀行 HANG SENG BANK#10Segment Performance Wealth and Personal Banking Achieved strong growth in wealth management business 11% year-on-year increase in wealth management income ■ Strengthened data analytics, uplifted digital banking capabilities and diversified investment and insurance products First bank in Hong Kong to extend equity-linked investment product subscription services to US securities for retail investors Launching the first ESG ETF based on Hang Seng Index Participated in Wealth Management Connect ('WMC') Scheme One of the first banks to launch cross-boundary investment services under the WMC Scheme Designated WMC team to provide seamless support to customers for their north- and south-bound investments 的 恒生銀行 HANG SENG BANK#11Segment Performance Wealth and Personal Banking Insurance business achieved strong growth ■Insurance business income increased by 17% Launched new products to meet growing customer needs such as lifetime protection, legacy planning and long-term asset growth Captured improved market sentiment to grow mortgage and credit card businesses ■New mortgage drawdowns outpaced the market, up 34% year-on-year ■10% increase in card spending by leveraging improved consumption sentiment 的 恒生銀行 HANG SENG BANK#12Segment Performance Wealth and Personal Banking Digital innovations and service enhancements Launched 415 digital innovations and enhancements for Personal Banking, including 'Pay with Hang Seng' online payment channel Mobile banking app users up by 12%, log-ons up 26% and total number of online transactions up 44% Continued to invest in 'Future Branch' concept Opened new landmark Central Branch 的 恒生銀行 HANG SENG BANK#13Segment Performance Commercial Banking, Global Banking and Global Markets 苑 恒生銀行 HANG SENG BANK#14Segment Performance Commercial Banking, Global Banking and Global Markets Continued to strengthen support for Commercial Banking customers ■Commercial Banking's trade finance lending up 41% Customer advances up 2% and customer deposits up 8% 10% increase in credit facilities fees; active in syndicated loan market ■ Captured opportunities to grow foreign exchange and trade fee incomes. 的 恒生銀行 HANG SENG BANK#15Segment Performance Commercial Banking, Global Banking and Global Markets ESG ■Introduced sustainability-linked loans and enhanced existing trade finance products with green and sustainable features ■Stepped up collaboration with Hong Kong Quality Assurance Agency to help green financing customers to capitalise on opportunities in the GBA Approved HKD7.3 billion green loans, 15 times more than 2020 Green bond investment portfolio up 83% year-on-year ■Began accepting green bonds as collateral for Repo Trading 的 恒生銀行 HANG SENG BANK#16Segment Performance Commercial Banking, Global Banking and Global Markets Fintech provided customers with greater convenience Introduced over 250 digital innovations and enhancements Launched new Virtual Account ■Leveraged blockchain technology to support digital trade documentation and finance activities ■More than doubling in average monthly customer acquisitions Collaboration with external partners Co-create "InnoClub", a one-stop platform to help SMEs digitalise their operations, with Hong Kong Trade Development Council 的 恒生銀行 HANG SENG BANK#17Segment Performance Commercial Banking, Global Banking and Global Markets Industry-specific solutions for Global Banking clients ■■21% increase current and savings deposits and 11% growth in loan balance 22% of total transactions migrated from in-branch counters to online channels Global Markets developments Expanded Repo Trading business ■Maintained market-making role for Hong Kong government bills and bonds Actively participated in issuance of Hong Kong Monetary Authority's first one-year HONIA-indexed Floating Rate Note ■Launched replacement financial products referencing new risk-free rates to support regulatory transition of LIBOR 恒生銀行 HANG SENG BANK#182021 Annual Results Business Overview Segment Performance Hang Seng China Financial Overview 2022 Outlook 的 恒生銀行 HANG SENG BANK#19Hang Seng China Maintained strong growth momentum Profit before tax ('PBT') increased by 23% PBT of Personal Banking business increased by 268% while Commercial and Global Banking businesses up 29% and 10% respectively Solid increase in lending Record high wholesale trade loans One of the most active foreign banks in the syndication segment, maintaining a top ranking in the industry 的 恒生銀行 HANG SENG BANK#202021 Annual Results Business Overview Segment Performance Hang Seng China Financial Overview 2022 Outlook 的 恒生銀行 HANG SENG BANK#21Financial Overview HK$ Mn 2021 vs 2020 Net interest income 23,822 11% net interest margin (%) 1.49 24bp Non-interest income 9,360 2% Net operating income before change in expected credit losses & other credit impairment charges 33,182 8% Change in expected credit losses & other credit impairment charges 2,807 3% Net operating income 30,375 9% Operating expenses 14,134 7% Operating profit 16,231 19% excl. change in expected credit losses & other credit impairment charges 19,038 17% Profit before tax 16,385 16% Profit attributable to shareholders 13,960 16% Earnings per share (HK$) 6.93 17% Dividends per share (HK$)* Cost efficiency ratio (%) *4th interim dividend for 2021: HK$1.80/share 5.10 0.40 42.6 6.0 pp Favourable Unfavourable 帆 恒生銀行 HANG SENG BANK#22Financial Overview HK$ Mn 2021 vs 2020 WPB CMB GB&M Net interest income 13,013 11% 7,037 15% 4,161 6% Non-interest income 5,493 8% 1,899 1,265 25% Net operating income before change in expected credit losses & other credit impairment charges 18,506 6% 8,936 12% 5,426 11% Operating profit 9,610 9% 4,147 18% 2,965 40% Profit before tax 9,682 8% 4,147 18% 2,965 40% Gross advances Customer deposits 的 恒生銀行 HANG SENG BANK WPB 6% 31 Dec 21 vs 31 Dec 20 CMB 2% 8% GB&M 11% 22% Favourable Unfavourable#23Financial Overview HK$ Mn Net interest income Average interest-earning assets Net interest margin (%) Return on average ordinary shareholders' equity (%) Return on average total assets (%) Capital ratio (%) Common Equity Tier 1 capital ratio Tier 1 capital ratio Total capital ratio 的 恒生銀行 HANG SENG BANK 2021 vs 2020 23,822 11% 1,595,483 2.7% 1.49 24bp ▼ 2021 7.7 0.8 31 Dec 21 15.9 17.5 18.9 Favourable Unfavourable#24Financial Overview HK$ Bn Gross advances For use in HK Businesses Individuals Trade finance For use outside HK HK$ Bn Customer deposits (incl. CDs and other debt securities in issue) 的 恒生銀行 HANG SENG BANK 31 Dec 21 vs 31 Dec 20 1,004 6% 742 3% 401 1% 341 8% 42 57% 220 9% 31 Dec 21 vs 31 Dec 20 1,339 3% Favourable Unfavourable#252021 Annual Results Business Overview Segment Performance Hang Seng China Financial Overview 2022 Outlook 的 恒生銀行 HANG SENG BANK#262022 Outlook Focus on growing business and capturing new opportunities in strategic customer segments and in the Greater Bay Area Boost contribution from non-fund income and digital channels Market expectation of Interest rate hike shall benefit net interest margin and net interest income Continue to adopt a prudent risk management approach whilst growing loans portfolio Innovation remains a top priority, equip staff with future skills Embrace fintech to integrate banking services more seamlessly into people's business and everyday lives Focus and drive action on ESG: Expand green loans and sustainability-linked investment products Enhance ESG performance in operations Continue to remain on track to meet target of being carbon neutral by 2030 Commit in community investment programmes to support sustainable, long-term development of Hong Kong 的 恒生銀行 HANG SENG BANK#27典 用 恒生銀行 HANG SENG BANK