|Bank of East Asia books record earnings, loan impairment losses surge to HK$527m
Privately-held commercial lender Bank of East Asia (0023) said today annual profit reached a new record high of HK$6.61 billion, up by 9.2 percent compared with the year before. The bank’s China operations were also profitable.
Earnings per share were HK$2.78.
Return on average equity and return on average assets were 11 percent and 0.9 percent, respectively.
The bank declared a second interim dividend of HK$0.68 cents per
share for the year ended 31st December, 2013, bringing the dividend for the year to HK$1.11 per share.
Net interest income increased by HK$2.44 billion, or 25.1 percent, to HK$12.16 billion, largely from lending and a widening of the net interest margin. Net fee and commission income increased by HK$613 million, or 18.1 percent, to HK$3.99 billion.
But trading income weakened. Non-interest income dropped by 5.6 percent to HK$5.08 billion.
Operating income increased by 14.2 percent to HK$17.2 billion.
Operating expenses increased by 9.8 percent to HK$9.58 billion.
Impairment losses grew by 98.6 percent to HK$527 million, mainly related to loans and advances. The bank said “impairment losses were still at a reasonable and controllable level.’’
Non interest margin at BEA China improved, the bank said, adding that lending increased by 12.7 percent in the year. The total outstanding increased to HK$144.2 billion. Deposits increased by 10.3 percent to HK$211.8 billion.
Net profit improved by 15.6 percent, to HK$1.88 billion.
BEA China operates 27 branches and 98 sub-branches in the mainland.
The bank employs 5,757 in Hong Kong and 5,773 in greater China.
Shares in BEA gained by 3.8 percent to HK$31.6 before the results announcement.--The Standard