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 the first half of 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 non-interest income surged 19.0% to HK$3,470 million.

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

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

Financial highlights

• Total assets increased 1.7% from year-end to HK$936,881 million; customer deposits decreased 1.9% to HK$693,431 million.

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

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

• Impairment losses on financial instruments rose 16.5% to HK$2,958 million; impaired loan ratio at 2.71%.

• Average liquidity coverage ratio for Q2 2026 was 167.9%; net stable funding ratio at 125.0%.

Outlook and guidance

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

• Non-CRE lending now 83% of loan portfolio, targeting 85% by 2028.

• Continued investment in digital transformation and AI to drive operational efficiency and risk management.

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