Shares of the Bank of East Asia (0023) slumped more than 12 percent after posting a 24 percent decline in 2025 net profit.
The lender’s profit dropped to HK$3.5 billion for the year, as valuation losses on investment properties increased by HK$578 million to HK$723 million. It also recorded a shared loss from associates and joint ventures of HK$305 million, mainly from an associate operating in the mainland.
It slashed the second interim dividend by 42 percent to 22 HK cents, which resulted in a 11.6 percent slide in the full-year payout to 61 HK cents.
Net interest income decreased by 7.3 percent, to HK$15.3 billion on lower interest rates. Net interest margin narrowed by 19 basis points year-on-year to 1.90 percent.
Non-interest income rose by 28 percent to HK$5.7 billion with net fee and commission income up by 14.8 percent to HK$3.2 billion, supported by a growing contribution of fees from investment activities and sales of third-party insurance policies.
Impairment losses on financial instruments increased 2.6 percent to HK$5.6 billion. Provisions on the commercial real estate sector accounted for 77 percent of total loan loss provisions, and the lender said it is continuing to adopt a prudent approach by proactively managing down CRE exposure.
