BOC Hong Kong (2388) Q3 2024 earnings summary

Executive summary

• Net operating income before impairment allowances rose 10.7% year-over-year for the first nine months of 2024 and 5.3% quarter-on-quarter in Q3 2024.

• Operating profit before impairment allowances increased 13.4% year-over-year and 6.1% quarter-on-quarter.

• Business growth was driven by resumption of commercial activities, tourism, and enhanced product offerings in insurance and funds.

• The group maintained a leading position in RMB business and expanded its Southeast Asian operations.

Financial highlights

• Net operating income before impairment allowances reached HK$53,815 million for the first nine months, up 10.7% year-over-year.

• Net interest income (including swap contracts) increased 10.4% year-over-year to HK$43,604 million; net interest margin stable at 1.62%.

• Net fee and commission income rose 2.7% year-over-year to HK$7,412 million.

• Operating expenses increased 2.4% year-over-year; cost-to-income ratio at 23.0%.

• Net charge of impairment allowances rose by HK$643 million year-over-year to HK$3,323 million.

• Annualised credit cost of advances to customers and other accounts was 0.26%, up 0.04 percentage points year-over-year.

Outlook and guidance

• The group expects continued uncertainty due to geopolitical tensions and macroeconomic risks.

• Forward-looking statements caution that actual results may differ materially from projections.