BOC Hong Kong (2388) is expected to face upward pressure on the non-performing loan (NPL) ratio amid global economic shocks, but as market volatility eases, credit costs may decline from 2025 levels, said its chief risk officer, Wang Chunfei.
Wang said Hong Kong's property market continued to improve, but office and retail vacancy rates remained high. She noted that the bank's NPL ratio in the first quarter of 2026 improved by 18 basis points from the end of 2025 to 0.96 percent, mainly due to repayments and write-offs, and that it has outperformed the market average.
Wang remarked on the bank's provision adequacy, given that the annualized credit cost fell to 0.16 percent and the total loan provision ratio was 1.06 percent.
She said the bank will closely monitor high-risk portfolios, dynamically adjust credit strategies, and accelerate NPL disposal.
The bank reported 3.1 percent quarter-on-quarter loan growth to HK$1.77 trillion. BOC Hong Kong's vice president Wang Huabin said the growth stemmed from serving the real economy and new quality productive forces, with corporate loans rising 2.6 percent and the mortgage market share reaching 29.3 percent.
BOC Hong Kong's full-year dividend for 2026 will be determined within the 40 percent to 60 percent payout range, considering earnings, shareholder expectations, regulatory requirements, and business opportunities, BOC Hong Kong's chief executive Liu Chang said.
