Dah Sing Banking Group's (2356) net profit for the first half of the year rose 13 percent yearly to about HK$1.6 billion, powered by higher net interest margin, strong fees, and trading income.
Net interest income grew by 9 percent to HK$2.8 billion, mainly as funding costs decreased at a faster pace than asset yields amid the downward pressure on Hong Kong interbank offered rates starting from May.
The company attributed this growth to a 23 basis-point expansion in net interest margin to 2.32 percent.
Its non-interest income also jumped 36 percent, including a 20 percent growth in net fee and commission income, as well as a 102 percent rise in the aggregate of net trading income and other operating income.
However, credit impairment charges rose 34 percent yearly to HK$728 million, predominantly reflecting prudent provisioning for Hong Kong commercial real estate exposures and other corporate loans.
The bank said that it had written down exposures to the mainland China property sector in 2024 and prior years, and it did not experience much impact from the residual credit exposures in this sector.
Amid external challenges and economic uncertainties, the bank expects elevated credit costs to persist throughout the rest of the year, while its business outlook would not be materially different in the remaining months of 2025.
Parent company Dah Sing Financial (0440) saw its interim net profit rise 26.4 percent year-on-year to HK$1.41 billion and increased its dividend by 26.1 percent to HK$1.16.
HELEN ZHONG
