The Bank of East Asia (23) H1 2025 earnings summary

Executive summary

• Profit attributable to owners rose 14.1% year-over-year to HK$2,407 million for H1 2025, with EPS up 24.6% to HK$0.86 and annualised ROE at 4.5%.

• Operating profit before impairment losses declined 3.9% to HK$5,447 million amid challenging market conditions.

• Net interest income fell 10.7% to HK$7,344 million as NIM narrowed by 22 bps to 1.88%.

• Non-interest income surged 29.2% to HK$2,915 million, driven by higher fee and commission income and trading gains.

• Operating expenses remained stable at HK$4,812 million, with a cost-to-income ratio of 46.9%.

Financial highlights

• Total operating income decreased 2.1% year-over-year to HK$10,259 million.

• Impairment losses on financial instruments dropped 11.9% to HK$2,539 million, with CRE sector accounting for 70% of provisions.

• Total assets grew 1.6% to HK$891,424 million; gross loans and advances rose 1.2% to HK$539,175 million.

• Customer deposits increased 3.4% to HK$665,226 million; loan-to-deposit ratio improved to 78.1%.

• Total equity attributable to owners increased 4.0% to HK$104,436 million.

Outlook and guidance

• Management expects global growth risks to persist due to US trade policy and weak Western demand, but Chinese Mainland and Hong Kong economies are forecast to remain resilient.

• The Group will focus on prudent risk management, digital transformation, and cross-border business expansion.

• Focus remains on productivity, technology upgrades, and expanding revenue drivers.