DAHSING BANKING<02356> - Results Announcement
Dah Sing Banking Group Limited announced on 17/08/2005:
(stock code: 02356 )
Year end date: 31/12/2005
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Audit Committee
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/01/2005 from 01/01/2004
to 30/06/2005 to 30/06/2004
Note ('000 ) ('000 )
Interest Income : 1,249,381 1,151,780
Profit/(Loss) from Operations : 553,001 652,107
Finance cost : N/A N/A
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : 900 4,139
Profit/(Loss) after Tax & MI : 460,636 538,901
% Change over Last Period : -14.5 %
EPS/(LPS)-Basic (in dollars) : 0.50 0.66
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 460,636 538,901
Interim Dividend : $0.23 $0.23
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Interim Dividend : 12/09/2005 to 15/09/2005 bdi.
Payable Date : 12/10/2005
B/C Dates for (-)
General Meeting : N/A
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
1. Basis of preparation and accounting policies
Dah Sing Banking Group Limited (the "Company") is a bank holding company.
Its principal subsidiaries include Dah Sing Bank, Limited and MEVAS Bank
Limited, which are both licensed banks in Hong Kong. The Company together
with all its subsidiaries (collectively the "Group") provide banking,
financial and other related services.
The accounting policies and methods of computation used in the preparation
of the 2005 interim condensed consolidated accounts are consistent with
those used and described in the annual accounts for the year ended 31st
December 2004 except that the Group has changed certain of its accounting
policies following the adoption of new/revised Hong Kong Financial
Reporting Standards ("HKFRS") and Hong Kong Accounting Standards ("HKAS",
collectively the "new HKFRS") issued by HKICPA which are effective for
accounting periods commencing on or after 1st January 2005.
2. Changes in accounting policies
2.1 Effect of adopting new HKFRS
In 2005, the Group adopted the following new/revised standards of HKFRS,
which are relevant to its operations. All changes in the accounting
policies have been made in accordance with the transition provisions in
the respective standards. All standards adopted by the Group require
retrospective application other than HKFRS2, HKAS 39 and HKAS 40 as
discussed in further details below. The 2004 comparatives have been
amended as required, in accordance with the relevant requirements.
2.1.1. HKFRS 2 Share-based Payments
The adoption of HKFRS 2 has resulted in a change in the accounting policy
for share-based payments pursuant to which the fair value of the liability
on cash-settled share-based transactions is determined at each reporting
date by way of an option pricing model until it is settled. The changes
in the fair value are taken to the profit and loss account. As a
transitional provision retrospective application to the extent the
liability is still outstanding as at 1st January 2005 is made and
corresponding restatement to 2004 comparatives is made.
2.1.2 HK(SIC) Interpretation 21 Income taxes - Recovery of revalued non
-depreciable assets ("HK (SIC) Int-21")
The adoption of HK(SIC) Int-21 has resulted in a change in the accounting
policy relating to the measurement of deferred tax liabilities arising
from the revaluation of investment properties. Under the new policy,
deferred tax liabilities are measured on the basis of tax consequences
that would follow from recovery of the carrying amount of that asset
through use. In prior years, the carrying value of that asset was
expected to be recovered through sale. As there would have been no tax
payable on the disposal of the Group's investment properties, no deferred
tax on the revaluation surplus was provided.
2.1.3 HKAS 39 Financial instruments: Recognition and Measurement
The adoption of HKAS 39 has resulted in a change in the accounting policy
relating to the classification of financial assets at fair value through
profit or loss and available-for-sale financial assets. It has also
resulted in the recognition of derivative financial instruments at fair
value and the change in the recognition and measurement of hedging
activities.
HKAS 39 does not permit to recognise, derecognise nor measure financial
assets and liabilities in accordance with the standard on a retrospective
basis. The Group applied the previous Statement of Standard Accounting
Practice ("SSAP") 24 "Accounting for investments in securities" to
investments in securities prior to 1st January 2005. The adjustments
required for the accounting differences between SSAP 24 and HKAS 39 are
determined and recognised as at 1st January 2005.
2.1.4 HKAS 40 Investment Property
The adoption of revised HKAS 40 has resulted in a change in the accounting
policy relating to investment properties of which the changes in fair
values are recorded in the profit and loss account as part of other
income. In prior years, the increases in fair value were credited to the
investment properties revaluation reserve. Decreases in fair values were
first set off against increases in earlier valuations on a portfolio basis
and thereafter expensed in the profit and loss account.
2.2 Effect of changes in the accounting policies on opening
consolidated balance sheet as at 1st January 2005
Before HKAS After
restatement HKFRS 2 Int 21 HKAS 39 restatement
--------------------------------------------------------------------------
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Increase/ (decrease) in equity as at 1st January 2005
Premises revaluation
281,894 - (9,359) - 272,535
Investment revaluation reserve
75,684 - - (14,790) 60,894
Retained earnings
3,919,873 (810) - 152,387 4,071,450
-------------------------------------------------------------------------
At 1st January 2005
4,277,451 (810) (9,359) 137,597 4,404,879
==========================================================================
Increase/ (decrease) in assets as at 1st January 2005
Cash and short-term funds
14,097,786 - - (1,204) 14,096,582
Securities measured at fair value
through profit or loss
- - - 1,267,916 1,267,916
Available-for-sale securities
- - - 17,139,337 17,139,337
Trading securities
2,568,170 - - - 2,568,170
Non-trading securities
17,444,626 - - (17,444,626) -
Held-to-maturity securities
1,296,927 - - (988,230) 308,697
Advances and other accounts, and trade bills
34,265,719 - - (21,269) 34,244,450
Derivatives financial instruments
- - - 8,430 8,430
--------------------------------------------------------------------------
69,673,228 - - (39,646) 69,633,582
(Increase)/ decrease in liabilities as at 1st January 2005
Deposits from customers
(43,477,448) - - 767,901 (42,709,547)
Deposit from customers designated at fair value through profit or loss
- - - (752,532) (752,532)
Financial liabilities designated at fair value through profit or loss
- - - (6,415,028) (6,415,028)
Other accounts and provisions
(8,106,680) (982) - 6,619,776 (1,487,886)
Current and deferred tax liabilities
(4,976) 172 (9,359) (34,111) (48,274)
Derivatives financial instruments
- - - (8,763) (8,763)
--------------------------------------------------------------------------
(51,589,104) (810) (9,359) 177,243 (51,422,030)
==========================================================================
18,084,124 (810) (9,359) 137,597 18,211,552
==========================================================================
INTERIM DIVIDEND
The Directors declared an interim dividend of HK$0.23 per share for the
six months ended 30th June 2005, with an option to receive newly issued
and fully paid shares in lieu of cash dividend to Shareholders whose names
are on the Register of Shareholders as at the close of business on 15th
September 2005. No fractional shares will be issued to Shareholders
electing for scrip dividend and shares representing fractional
entitlements will be disposed of for the benefit of the Company. Newly
issued shares will rank pari passu in all respects with the existing
shares except that they will not rank for the 2005 interim cash dividend.
New share entitlements will be calculated by reference to the average of
the closing prices of the existing shares of the Company on The Stock
Exchange of Hong Kong Limited for the five trading days up to and
including 9th September 2005. Particulars of the scrip dividend scheme
will be detailed in a circular to Shareholders together with an election
form to be released on or about 16th September 2005. The scrip dividend
scheme is subject to the approval of the Listing Committee of The Stock
Exchange of Hong Kong Limited. Dividend warrants for cash dividend or
share certificates for the scrip dividend will be sent to Shareholders by
ordinary mail on or about Wednesday, 12th October 2005.
2.3 Effect of changes in the accounting policies on profit and loss
account
2005 2004
HK$'000 HK$'000
Increase/ (decrease) in profit before tax for the six months ended 30th
June
The effect on adoption of the new accounting standards on the profit and
loss account is illustrated below:
Effect of new policy (increase / (decrease))
HKFRS 2
Change in fair value of the liability on cash- settled share-based
transactions (681) -
HKAS 39
Valuation changes in respect of trading securities
1,391 N/A
Reduction of interest income from discontinued accrual on funding swaps
(35,663) N/A
Revaluation gain from funding swaps 53,507 N/A
Release of impairment charges on loans and advances
20,413 N/A
--------------------
39,648 N/A
====================
38,967 -
====================
Effect on earnings per share
Basic HK$0.04 N/A
Basic and diluted earnings per share
The calculation of basic earnings per share is based on earnings
of HK$460,636,000 (2004: HK$538,901,000) and the weighted average number
of 919,830,827 (2004: 810,450,000) shares in issue during the period.
No calculation of diluted earnings per share is made as there are
no outstanding instruments which may present a dilutive effect to basic
earnings per share throughout the periods.
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