Bank of East Asia profit up 14 percent, lifts dividend by 26 percent

The Bank of East Asia (0023) recorded a 14.1 percent rise in first-half net profit to HK$2.41 billion, and lifted the interim dividend by 25.8 percent to 39 HK cents.

Net interest income fell by 10.7 percent, to HK$7.34 billion and net interest margin narrowed by 22 basis points year-on-year to 1.88 percent.

Non-interest income increased by 29.2 percent to HK$2.92 billion. Net fee and commission income rose 16.7 percent year-on-year to HK$1.65 billion, supported by a growing contribution of fees from investment activities and sales of third-party insurance policies. 

Net profit from trading, revaluation of financial instruments, and related hedging also improved 43.8 percent, mainly driven by higher revenue from structured products and FX dealings, which resulted from increased customer activities.

The BEA said it remains cautious regarding potential risks in its Hong Kong CRE portfolio. Asset quality stayed largely stable throughout the first half of 2025, the bank said, adding that its exposure to the sector had been reduced.