Zhongtong Finance APP News, Public Fin Hold (00626) released an announcement, and the group predicts that the equity shareholders of the company will incur a loss of approximately HKD 30 million for the six months ending June 30, 2024, while the surplus for the six months ending June 30, 2023 was HKD 114 million, mainly due to:

Expected credit loss reserves to increase by approximately HKD 80 million, mainly from lease-purchase loans in the situation of a significant decline in the value of public vehicle license plates, as well as an increase in default and bankruptcy cases of private loan borrowers; the rising funding costs led to a decrease in net interest income of approximately HKD 35 million; and the fair value of the investment property in the first half of 2024 decreased by approximately HKD 25 million, while the revaluation income in the same period of 2023 was HKD 7 million.

The announcement stated that the group's capital and liquidity remained strong and well above regulatory requirements to meet its business operation needs. The tier one capital adequacy ratio and total capital adequacy ratio of the Public Bank (Hong Kong) Group (including the main subsidiary company, Public Bank (Hong Kong) Limited, and Public Finance Limited) are both higher than 24.0% and 25.0%, respectively. The comprehensive liquidity coverage ratio and core funding ratio of the Public Bank (Hong Kong) Group are both higher than 60% and 145%, respectively.