The Bank of East Asia (23) H1 2026 earnings summary

Executive summary

• Profit attributable to owners rose 0.4% year-over-year to HK$2,416 million for H1 2026, with basic EPS up 5.8% to HK$0.91 and annualised ROE at 4.6%.

• Pre-provision operating profit increased 16.5% to HK$6,348 million, driven by resilient top-line growth and stable operating expenses.

• Net interest income grew 4.8% to HK$7,697 million, while net interest margin narrowed slightly to 1.85%.

• Non-interest income surged 19.0% to HK$3,470 million, led by higher fee and commission income and trading profits.

• Interim dividend declared at HK$0.46 per share, up from HK$0.39 last year.

Financial highlights

• Operating income rose 8.9% year-over-year to HK$11,167 million.

• Operating expenses remained stable at HK$4,819 million, improving the cost-to-income ratio to 43.2%.

• Impairment losses on financial instruments increased 16.5% to HK$2,958 million.

• Valuation losses on investment properties rose to HK$407 million.

• Total assets grew 1.7% to HK$936,881 million; customer deposits fell 1.9% to HK$693,431 million.

• Loan-to-deposit ratio increased to 77.1% from 75.3% at end-2025.

• Total equity attributable to owners rose 1.8% to HK$107,201 million.

Outlook and guidance

• Strategic plan for 2026-2028 focuses on asset diversification, sustainable revenue growth, and technology-driven efficiency.

• Continued reduction in commercial real estate exposure, targeting 85% non-CRE by 2028.

• Ongoing investment in digital transformation and AI-driven operational improvements.

• Cautious outlook amid global geopolitical tensions, inflation, and property sector challenges.