Bank of East Asia Presents 2013 lnterim Results
OREANDA-NEWS. August 14, 2013. Speech by Dr. David K.P. Li, Chairman & Chief Executive of The Bank of East Asia, Limited (“BEA”)
Continuing the trend that we have set in recent years, the BEA Group has once again delivered strong core earnings growth. Profit Attributable to Owners of the Parent rose to HKD3.4 billion, 13% higher than in the same period in 2012. This is a new interim record for the Group.
Net interest income was up 23% year-on-year, to HKD 5.7 billion. Net fee and commission income was 19% higher, rising to HKD 2 billion. Improving net interest margin contributed to the rise. At the Group level, net interest margin increased by 20 basis points year-on-year, and 13 basis points half-on-half.
BEA’s wholly-owned subsidiary, The Bank of East Asia (China) Limited (“BEA China”) is successfully adapting to the new interest rate environment on the Mainland. By proactively managing both its loan portfolio and deposit base, BEA China increased net interest margin by 8 basis points half-on-half.
We said that we would improve efficiency by focusing on growth, and that is what we have done. Total operating income was up by 12%. Total operating expenses were well contained, rising by 8%. As a result, we lowered our cost to income ratio from 56% in the first half of 2012, to 54.2% during the same period this year.
We are delivering strong core-earnings growth by managing our resources better. We are focusing on the customer, on yield, and on the strength of our cross-border network to drive business growth. In Hong Kong, we are taking bold steps to attract a young, affluent clientele to the Bank. During the first half of this year, we updated the appearance of our entire retail network in Hong Kong, to convey a more youthful, eye-catching image.
We constantly refine our products and services, in order to meet and exceed the expectations of our customers. Our online and mobile platforms are all optimised for the latest technology. With more than 230 outlets worldwide, BEA operates an extensive international network covering Hong Kong and the rest of Greater China, Southeast Asia, the United Kingdom, and the United States. For more information on BEA, please visit any BEA branch or the Bank’s homepage at www.hkbea.com.