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199Chairman’s Review – Business Operations ReviewInternational OperationsHONG KONGAt a Glance2012HKD’Million2011HKD’MillionGrowth%Profit before taxPublic Financial Holdings Groupof which:Public Bank (Hong Kong) Limited^Public Finance Limited^455.8103.0290.3468.297.1324.9(2.7)6.1(10.7)Gross loans, advances and financingPublic Bank (Hong Kong) LimitedPublic Finance Limited22,413.24,682.522,931.44,634.3(2.3)1.0Deposits from customersPublic Bank (Hong Kong) LimitedPublic Finance Limited25,009.23,830.424,218.03,456.13.310.8Gross impaired loans ratio (%)Public Bank (Hong Kong) LimitedPublic Finance Limited0.52.80.72.9(0.2)(0.1)Risk-weighted capital ratio (%)Public Bank (Hong Kong) Limited*Public Finance Limited*16.430.116.130.80.3(0.7)^profit excluding dividends from subsidiaries* presented in accordance with the Banking (Capital) Rules under Section 98A of the Banking Ordinance issued by the Hong Kong Monetary AuthorityThe Public Bank Group’s operations in Hong Kongconcentrate on two core businesses:i) Retail and commercial bankingii) Stockbroking and wealth managementThe retail and commercial banking activities of the PublicBank Group in Hong Kong are mainly driven by Public Bank(Hong Kong) Limited and Public Finance Limited. As a resultof intense competition coupled with weak demand arisingfrom slowdown in the Hong Kong economy, Public Bank(Hong Kong) Limited’s total loans and advances dropped byHKD0.52 billion or 2.3% to HKD22.41 billion as at the endof 2012 from HKD22.93 billion a year ago. However, thepersonal loans business undertaken by Public FinanceLimited which serves the middle- to lower- incomehouseholds and overseas contract workers recorded amarginal increase of HKD48.2 million or 1.0% toHKD4.68 billion as at the end of 2012 from HKD4.63 billiona year ago. Although lending was subdued, credit riskremained relatively stable and healthy. Public Bank (HongKong) Limited’s gross impaired loans ratio remained healthyat 0.5% as at the end of 2012 whilst gross impaired loansratio of Public Finance Limited improved to 2.8% from 2.9%a year ago as a result of vigilant and proactive measurestaken to identify and manage potential impaired loans.Despite intense competition for customer deposits, PublicFinance Limited achieved commendable deposit growth of10.8% to HKD3.83 billion as at the end of 2012 whilstPublic Bank (Hong Kong) Limited’s customer deposits grewby 3.3% to HKD25.01 billion as at the end of 2012.