BEA climbs 6pc on rising profit, dividends

Shares in Bank of East Asia (0023) jumped nearly 6 percent on Thursday after the bank reported an 11.9 percent growth in net profit for the year and declared a 27.78 percent rise in annual dividends.

Net profit increased from HK$4.12 billion in 2023 to HK$4.61 billion, benefiting from the onset of the US interest rate easing cycle as well as stimulus measures announced by the central and local governments, according to a recent filing.

Executive chairman David Li Kwok-po expects Beijing to continue implementing stimulus measures on top of efforts to secure supply chains and attain technological autonomy, stabilize the real estate market and drive domestic consumption.

BEA declared a second interim dividend of 38 HK cents per share, more than double last year’s, bringing the total dividend for the year to 69 HK cents per share, up 27.78 percent.

Net interest income decreased by HK$345 million, or 2 percent, to HK$16.53 billion. With the reduction in interest rates, the net interest margin narrowed by five basis points year on year – from 2.14 to 2.09 percent.

Net fee and commission income grew by 6.2 percent year on year to HK$2.8 billion, due to increased investment activities and third-party insurance sales.

The bank pledged to centralize, streamline and digitalize all aspects of its activities to become a seamless and frictionless cross-boundary bank, Li said.

STAFF REPORTER