Greetings to our clients, shareholders and employees.

Thank you for your endless interest and support towards the HK Savings Bank. The economy is currently suffering a recession, inflicting much damage on all financial institutions including the savings banks. During such times there is a greater probability that the situation will exacerbate, relative to the bleak possibility of seeing any improvements during the short run.

We, as the employees of HK Savings Bank, face this troublesome period with great concern and with a readiness to adapt. We are aiming to achieve more than satisfactory management results for our clients and shareholders, persistently working to become the leader amongst other banks in the industry.

The HK Savings Bank has already given up large loan portfolios such as PF loans many years ago, and is now focusing to expand small loan finance found in the core of small loan portfolios. Not only have we established the industry’s best risk management system during this process, but we have also strengthened client information protection, boosted the employees’ sense of ethics and have maintained internal security. As a result, HK Savings Bank achieved surpluses during the last consecutive 6 years, as well as significantly increasing most of the management index figures. For example, we recently exceeded 10% on the BIS capital ratio, now proudly representing ourselves as one of the largest savings banks.

In retrospect, the savings bank industry has undergone a severe crisis during the past 2 years. However the main reason that the HK Savings Bank was actually able to expand through this crisis lies behind the persistent interest and support by our clients. The HK Savings Bank will remain humble and strive for change in order to provide better services to more clients in the future.

We pray for the good health of all of our associates. Thank you