HONG KONG – Bank of East Asia Ltd. (0023.HK), Hong Kong's fifth-largest lender by assets, said Tuesday its 2011 net profit rose 3.2% to a record high even as non-interest income weakened.
Although strong gains in interest and fee-based income helped boost Bank of East Asia's results last year, the lender remains cautious about business conditions.
"We expect loan growth for this year could be weaker than last year as global uncertainties weigh on the business environment," Deputy Chief Executive Adrian Li said at a post-earnings conference.
Despite the uncertain global outlook, Bank of East Asia said it has no plans to lay off staff.
The Hong Kong-based lender said its net profit rose to HK$4.36 billion (US$565 million) in 2011 from HK$4.22 billion a year earlier.
However, the result was worse than the average HK$4.44 billion forecast of 23 analysts polled earlier by Thomson Reuters.
Bank of East Asia's Hong Kong-listed shares closed down 2.8% at HK$29.75, while the Hang Seng index was up 0.2%.
The Hong Kong lender said net interest income from core lending operations rose 23% to HK$9.26 billion from HK$7.54 billion.
Total loans to customers increased by 8.4% to HK$321.9 billion in 2011 from HK$297.0 billion a year earlier, largely due to strong loan demand from mainland Chinese enterprises.
Non-interest income fell 3.7% to HK$3.45 billion from HK$3.58 billion, dragged by losses on trading activities and investments amid the worsening global economy.
The bank had a 13.7% capital adequacy ratio at the end of 2011, slightly higher than 13.2% at the end of 2010.
Still, its core capital adequacy ratio fell to 9.4% at the end of 2011 from 9.8% at the end of 2010.
Bank of East Asia, which has more than 220 branches worldwide, including 100 outlets in China, proposed a second interim dividend of HK$0.51 a share, bringing the dividend for full year to HK$0.94.
foxbusiness.com
Although strong gains in interest and fee-based income helped boost Bank of East Asia's results last year, the lender remains cautious about business conditions.
"We expect loan growth for this year could be weaker than last year as global uncertainties weigh on the business environment," Deputy Chief Executive Adrian Li said at a post-earnings conference.
Despite the uncertain global outlook, Bank of East Asia said it has no plans to lay off staff.
The Hong Kong-based lender said its net profit rose to HK$4.36 billion (US$565 million) in 2011 from HK$4.22 billion a year earlier.
However, the result was worse than the average HK$4.44 billion forecast of 23 analysts polled earlier by Thomson Reuters.
Bank of East Asia's Hong Kong-listed shares closed down 2.8% at HK$29.75, while the Hang Seng index was up 0.2%.
The Hong Kong lender said net interest income from core lending operations rose 23% to HK$9.26 billion from HK$7.54 billion.
Total loans to customers increased by 8.4% to HK$321.9 billion in 2011 from HK$297.0 billion a year earlier, largely due to strong loan demand from mainland Chinese enterprises.
Non-interest income fell 3.7% to HK$3.45 billion from HK$3.58 billion, dragged by losses on trading activities and investments amid the worsening global economy.
The bank had a 13.7% capital adequacy ratio at the end of 2011, slightly higher than 13.2% at the end of 2010.
Still, its core capital adequacy ratio fell to 9.4% at the end of 2011 from 9.8% at the end of 2010.
Bank of East Asia, which has more than 220 branches worldwide, including 100 outlets in China, proposed a second interim dividend of HK$0.51 a share, bringing the dividend for full year to HK$0.94.
foxbusiness.com
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