CITIC Limited Half-Year Report 2019

13 Half-Year Report 2019 CITIC Limited Revenue by nature Half-year ended 30 June Increase/(Decrease) HK$ million 2019 2018 Amount % Net interest income 67,461 62,213 5,248 8.4% Net fee and commission income 34,929 29,314 5,615 19% Sales of goods and services 165,233 155,244 9,989 6.4% Sales of goods 144,391 136,645 7,746 5.7% Services from construction contracts 8,269 4,482 3,787 84% Services from other services 12,573 14,117 (1,544) (11%) Other revenue 9,553 11,552 (1,999) (17%) Other revenue 5% Net interest income 24% Net fee and commission income 11% Sales of goods and services 60% Other revenue 3% Net interest income 24% Net fee and commission income 13% Sales of goods and services 60% 2019 First half of 2018 First half of Impairments In the first half of 2019, the Group recorded expected credit loss and asset impairment of HK$40,188 million, an increase of 26% from the same period last year. Of the total impairment, CITIC Bank accounted for HK$39,606 million, which mainly includes a HK$38,921 million impairment on its loans and advances to customers. Net finance charges Finance costs of the Group increased HK$391 million, or 6.4% from the first half of 2018 to HK$6,544 million in the first half of 2019, mainly due to the implementation of new lease standards which caused the increase in interest expenses related to lease liabilities of HK$332 million. In the first half of 2019, finance income from operation management business and subsidiaries under non-financial businesses amounted to HK$1,355 million, mainly due to the increase in interest income from bank deposits, an increase of HK$550 million from the first half of 2018. Income tax Income tax of the Group in the first half of 2019 was HK$10,024 million, a decrease of HK$1,773 million compared with the same period last year, mainly due to the increase in tax-free income from CITIC bank and other subsidiaries.