BOCHK posts higher profit as lower credit costs offset margin pressure
Bank of China (Hong Kong), one of the city’s three note-issuing banks, reported a 7.1 per cent year-on-year increase in first-half net profit, as lower impairment charges and a wider net interest margin helped offset continued pressure on lending margins from falling Hong Kong interbank rates. Profit attributable to shareholders came to HK$23.74 billion (US$3 billion) for the six months to June 30, or HK$2.2453 per share, according to a stock exchange filing on Friday. The result beat analysts’...
Bank beats forecast with HK$23.74 billion profit, helped by reduced credit costs and stronger fee income from wealth and insurance
Profit attributable to shareholders came to HK$23.74 billion (US$3 billion) for the six months to June 30, or HK$2.2453 per share, according to a stock exchange filing on Friday. The result beat analysts’ average estimate of HK$22.94 billion.
BOCHK’s net interest margin, including income from foreign exchange swap contracts, stood at 1.57 per cent, versus 1.54 per cent a year earlier.
“We will further optimise our management in Southeast Asia and build a leading regional headquarters,” said Sun Yu, vice-chairman and chief executive of BOCHK, at a press conference on Friday.
Sun added that BOCHK would actively support national strategies and Hong Kong’s development, while striving to “continue creating enhanced value for shareholders and stakeholders”.
Credit costs also eased during the period, supporting the lender’s bottom line after elevated impairment charges in recent years.
