Bank of China Hong Kong Posts 7.1% Profit Rise in First Half, Announces 3-Year Shareholder Return Plan
AM730 · 1 SOURCESabout 1 hour ago2 MIN
Summary
Bank of China Hong Kong (BOCHK, stock code 2388) released its 2024 interim results for the six months ended June 30, reporting a net profit of HK$23.739 billion, up 7.1% year-on-year . The board declared a second interim dividend of HK$0.29 per share along with a special dividend of HK$0.2388 per share, bringing combined dividends per share to HK$0.8188 when added to the first interim dividend . Looking ahead, the bank announced a 2026-2028 three-year shareholder return plan, which includes systematically increasing the regular dividend payout ratio within the established range and delivering at least HK$10.5 billion in additional shareholder returns during the period .
Key Points
- Net interest income reached HK$28.182 billion, climbing 12.2% year-on-year, driven by a 1.4% rise in average interest-earning assets
- Net interest margin expanded to 1.48%, widening by 14 basis points year-on-year, primarily due to enhanced deposit pricing management and improved deposit structure
- Net fees and commissions income fell 5.8% to HK$5.979 billion, with insurance and trust and custody services commissions declining 40.5% and 22% respectively
- New business standard premiums surged 27.9% year-on-year to HK$18.962 billion, while contract service margin balance increased 23.6% from end-2023
- Impaired loan ratio stood at 0.89%, down 0.25 percentage points from end-2023, as net provisions for loan impairments decreased 26.9% to HK$2.385 billion
Why It Matters
BOCHK's solid interim performance demonstrates the bank's ability to grow profitability through effective asset-liability management despite a challenging interest rate environment, with the expanded net interest margin reflecting successful deposit pricing strategies . The approved three-year shareholder return plan signals the board's confidence in sustainable earnings growth and commitment to delivering value to shareholders over the medium term .
BOCHK's solid interim performance demonstrates the bank's ability to grow profitability through effective asset-liability management despite a challenging interest rate environment, with the expanded net interest margin reflecting successful deposit pricing strategies . The approved three-year shareholder return plan signals the board's confidence in sustainable earnings growth and commitment to delivering value to shareholders over the medium term .