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Impairments
In the first half of 2016, the Group recorded an asset impairment of HK$28,470 million, an increase of HK$6,808
million, or 31% from the first half of 2015. Of the total impairment, CITIC Bank accounted for HK$28,424 million,
an increase of HK$7,310 million, or 35% from the same period last year, which mainly includes an HK$23,559
million impairment on its loans and advances to customers.
Net finance charges
Finance costs decreased HK$1,323 million, or 27% from HK$4,947 million in the first half of 2015 to HK$3,624
million in the first half of 2016, as a result of a decrease in borrowings of operation management segment and
subsidiaries under non-financial segment.
In the first half of 2016, finance income from operation management segment and subsidiaries under non-
financial segments amounted to HK$534 million, mainly came from interest income on bank deposits, a decrease
of HK$746 million, or 58% from the first half of 2015.
Interest expense capitalised
Interest expense capitalised decreased HK$639 million, or 66% from HK$963 million in the first half of 2015 to
HK$324 million in the first half of 2016. This was mainly because that the 6 production lines of Sino Iron were
fully commissioned in May, interest expense capitalized decreased correspondingly.
Income tax
Income tax of the Group in the first half of 2016 was HK$12,343 million, an decrease of HK$854 million compared
with the same period last year. This was in line with the changes in profit before taxation.