BOC HK first half profit slides 17 percent to $12.6 billion

BOC Hong Kong's (2388) first-half net profit fell 17 percent to around HK$12.6 billion from the same period in 2020. It maintained an interim dividend per share of HK$44.7 cents.

The bank's net operating income before impairment allowances fell 12.8 percent to HK$25 billion due to a year-on-year decrease in net interest income.

Its adjusted net interest income, which included the funding income or cost of foreign currency swap contracts,  also fell 18 percent to HK$15.9 billion due to a narrowing of net interest margin.

Its adjusted net interest margin was down 40 basis points year-on-year to 1.1 percent as a result of falling market interest rates.

Net fee and commission income surged 22.5 percent to HK$6.66 billion. This was mainly due to the growth in commission income from securities brokerage which jumped nearly 40 percent, as well as that from funds distribution and insurance, amid satisfactory market investor sentiment in early 2021, said the group.