Bank of East Asia says provision will cover impairment losses

Business | 21 Aug 2019 4:39 pm

Bank of East Asia (0023) co-chief executive Brian David Li Man-bun said the provision made is  enough to cover impairment losses.

The 100-year-old lender warned in June that four legacy loan assets in the mainland with a nominal value of HK$6.2 billion had been downgraded, after commercial property market conditions weakened in non-tier-1 cities during the first half.

Certain legacy loan assets were disposed of to third parties, the bank reported.

Brian David Li said it is not difficult for BEA to move into the tier-one cities in the mainland with its customer base.

He said that the proportion of loans to individuals in the mainland is already about 35 percent, while the loans to corporates is 65 percent, and the bank will maintain the proportion in the second half.

The family-run bank said last year that it expects retail loans to account for 30 percent of total loans in the mainland by 2020.

 

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