FHB Latest Report

Financial Performance Review

Based on the provided financial data, First Hawaiian's total operating revenue decreased to RMB188,129,000 as of December 31, 2024, compared to RMB210,140,000 as of December 31, 2023, a decrease of approximately 10.47%. This indicates a reduction in the company's revenue over the past year, possibly due to a deteriorating market environment or internal operational challenges.

Key Financial Data

1. First Hawaiian's total operating revenue decreased to RMB188,129,000, a decrease of 10.47%.

2. Interest income increased to RMB158,753,000 in 2024 from RMB151,793,000 in 2023, showing some improvement in interest income.

3. In terms of net profit, the net profit in the first three quarters of 2024 was US$178 million, a decrease of 5.25% year-on-year, reflecting a decline in profitability.

4. The overall economic environment has had a significant impact on the banking industry, including the high-interest rate environment and a decrease in credit demand.

Industry Comparison

1. Industry-wide analysis: The banking industry as a whole faced multiple challenges in 2024, with a general decline in operating revenue due to insufficient credit demand caused by high interest rates and economic slowdown. According to industry reports, it is expected that the net profit of US banks in 2024 will decrease by 3.3% year-on-year, indicating the industry's overall pressure and declining profitability. This trend reflects a weakening of market confidence in the banking sector.

2. Peer evaluation analysis: Compared to its peers, First Hawaiian's total operating revenue decreased by 10.47%, which is a moderate change within the industry. Many competitors also faced revenue declines, but some large banks like JPMorgan and Bank of America due to their diversified businesses, may show stronger resilience. Further analysis of other banks' revenue changes can help assess First Hawaiian's relative performance in the industry.

Conclusion

This analysis shows that First Hawaiian faced a double decline in operating revenue and net profit in 2024, driven by high competition and unfavorable economic conditions. Although interest income increased, the overall revenue sources were insufficient, putting the company under significant operating pressure. This trend is prevalent in the banking industry, reflecting the industry's difficulties in the current environment.

Opportunities

1. The growth in interest income indicates the company's stability in interest income, which can be further enhanced through optimized asset-liability management.

2. With changes in the market environment, acquisition or cooperation opportunities may arise to expand market share and diversify revenue sources.

3. The recovery period may bring a rebound in credit demand, which First Hawaiian can seize to expand its market.

Risks

1. The continuation of the high-interest rate environment may further compress the bank's profit margin, leading to more customer losses.

2. Insufficient credit demand and rising customer default rates may affect the bank's asset quality and earnings.

3. Intensified competition may lead to a decrease in fees and commissions, affecting overall operating revenue.