The Bank of East Asia (23) H2 2024 earnings summary

Executive summary

• Net profit attributable to owners rose 11.9% year-over-year to HK$4,608 million, with basic EPS up 15% to HK$1.52 and return on average equity at 4.0% for 2024.

• Pre-provision operating profit remained stable at HK$11,345 million despite a challenging environment.

• The OneBank strategy drove cross-boundary business growth, digital adoption, and diversified income streams.

Financial highlights

• Net interest income decreased 2.0% year-over-year to HK$16,529 million, with NIM narrowing to 2.09%.

• Net fee and commission income increased 6.2% to HK$2,802 million, supported by investment and insurance sales.

• Non-interest income rose 14.9% to HK$4,450 million, driven by trading and financial instruments.

• Operating expenses increased 2.1% to HK$9,634 million; cost-to-income ratio at 45.9%.

• Impairment losses on financial instruments were HK$5,497 million; impaired loan ratio at 2.72%.

• Total assets grew 2.0% to HK$877,759 million; customer deposits up 2.3% to HK$643,093 million.

• Loan-to-deposit ratio improved to 80.2%.

• Total equity attributable to owners increased 2.5% to HK$100,443 million.

Outlook and guidance

• Management expects moderate global and regional growth in 2025, with Hong Kong forecasted at 2.5% and Mainland China at 4.8%.

• Focus remains on prudent risk management, digital transformation, and leveraging cross-boundary opportunities.

• The Bank aims to further centralise, streamline, and digitalise operations, and expand its OneBank platform.