BOC Hong Kong (2388) posted a 7.1 percent rise in first half net profit to HK$23.7 billion.
It declared a second interim dividend of 29 HK cents, and a special dividend of 23.88 HK cents.
The lender said it would increase the regular dividend payout ratio within the established dividend payout range, and plans to deliver additional shareholder returns of no less than HK$10.5 billion over three years.
Net interest income rose 12 percent to HK$28.2 billion for the period, as margin went up 14 basis points to 1.48 percent.
If the funding income or cost of foreign exchange swap contracts were included, net interest income would have increased by 3.3 percent year-on-year to HK$29.9 billion, due to growth in average interest-earning assets and net interest margin, BOCHK said.
Net fee and commission income slid 5.8 percent to HK$5.98 billion, primarily due to lower commission income from insurance.
The group’s net charge of impairment allowances on advances and other accounts dropped by 27 percent to HK$2.4 billion, mainly due to a higher base for comparison resulting from impairment allowances made in relation to changes in the loan portfolio, downgrades to the internal ratings of certain customers in the real estate sector amid weakness in the commercial real estate market, and deteriorating business conditions or debt restructuring of certain non-performing customers in the same period last year.
