AIA (1299 HK) released strong results this morning, with EPS of USD0.62 beating expectations of USD0.57 and representing 29% YoY growth. New business value (NBV) increased by 21.7% YoY on actual exchange rates (AER), ahead of forecasts of 18.1%, mainly driven by strong growth in the Hong Kong market. On a constant exchange rate (CER) basis, NBV grew 18% YoY due to depreciation of the USD during 2021 against AIA’s function currencies in its main markets. However, operating profit (OPAT) increased 7.9% YoY, lower than expectations of 11%. AIA’s DPS HKD1.46 slightly missed expectations of HKD1.52. The company disclosed a USD10bn share buy-back plan, which is likely to boost investors’ sentiment. Mainland China saw 7% NBV growth YoY on CER basis, implying negative NBV growth in 2H21 since 1H21 saw 24% YoY growth. Hong Kong saw 37% NBV growth in 2021 on CER basis, implying 8% YoY growth in 2H21.
