News
FINANCIAL SERVICES | Staff Reporter, Hong Kong
view(s)

BOC Hong Kong's operating income climbs 16% to $13.42b in Q1

The Q1 performance, however, was lower by 9.8% year-on-year.

BOC Hong Kong has reported its net operating income before impairment allowances increased to $13.42b in the first quarter of the year.

This was 16.3% higher compared to the $11.53b recorded in the previous quarter; but lower by 9.8% when compared to the same period last year.

Operating profit before impairment allowances rose 41.9% quarter-on-quarter to $9.65b.

Net fee and commission income increased 43.9% compared to the previous quarter. This was linked to a growth in commission income from securities brokerage, funds distribution and insurance.

Commission income from loans, trust and custody services also increased; but net interest income dropped by 1.8% quarter-on-quarter, if the funding income or cost of reogin currency swap contracts are taken into account.

“This was mainly due to continuously falling market interest rates, which resulted in a narrowing of the loan and deposit spread and net interest margin narrowed 5 basis points compared with the previous quarter,” the group said.

This was offset by a growth in the average interest-earning assets.

Further, operating expenses dropped 20.4% qoq as staff cost, premises and equipment and business-related expenses decreased.

Net charge of impairment allowances decreased by HK$450 million quarter-on-quarter. This decrease was attributable to there being a higher base for comparison as a result of the impairment allowances made in the previous quarter.

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.