, Hong Kong

Questions over expense handling dog BEA

Bank of East Asia head honcho and chairman of the Chinese Banking Association, David Li, has been forced into eating a cold serving of humble pie after his seemingly untouchable bank suffered its first loss in 40 years. “BEA hasn’t posted a loss since at least the 1960’s,” said the bank’s spokesperson, Vera Lung. So why did it take the bank four decades to post a loss? The bank made a loss after writing down the value of credit-market investments, according to Bloomberg. For the six months ending 31st December BEA was hit with a USD110 million deficit just months after the bank’s shares fell 61 percent, according to Bloomberg. The bank’s results may come as a shock to some but not to Core-Pacific Yamaichi analyst, Lee Yuk-kei who wasn’t at all surprised by BEA’s poor performances due to the bank’s questionable handling of its expenses. “BEA has never been good at controlling expenses,” said Lee. So what can Li do to remedy the ills of his ailing bank? Rumours are aflutter that Li, a current member of the Hong Kong Legislative Council, is planning to cut costs by forcing his workers to take one day of unpaid leave per month, according to Bloomberg. So will Li’s plans help to restore BEA to its former glory? Times are grim and Li knows it. “The effects will be felt by the bank well into 2009,” said Li. And there’s no love for next year’s results either it seems with Morgan Stanley analyst Anil Agarwal expecting BEA “to have almost zero profits in 2009.”

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Asian Banking & Finance in your inbox

VCs flocking to "lucrative" APAC payments segment: report

Global VC deals rose to 620 in Q1 2021.

China injects $15.5b cash into the financial system to maintain liquidity: report

The nation’s top leaders recently described economic recovery as “unbalanced and unstable.”

Chart of the Week: Card payments in China to rebound 21.3% in 2021

Card payments are set to rise as economic activities gathers pace.

Citi APAC adds nearly 650 new wealth professionals in 2021 so far

The group has added over $5b in net new money in Q1 alone.

Goldman Sachs ramps up China ambitions with hiring spree: report

It is planning to add over 400 new people in its headcount in 2021 alone.

Citi appoints new head for private banking arm in South Asia

Lee will have direct responsibility over the private bank arm of Singapore, Malaysia.

Citi APAC rolls out gender diversity program for investment, securities arm

The program’s 50 top candidates will have the chance to be recruited by the bank.

Standard Chartered, EastWest on the blueprint for building the bank of the future

Data is the new oil, says Sarabjit Anand, Standard Chartered’s CIO for Singapore and ASEAN.

Low costs buoys Australian banks’ profits, but pressures to persist

Operating profit is 46% higher than last year, but pre-impairment earnings remain subdued.

HSG shares insights on modelling core banking IT for the digital economy

Sisi Yu gives us a glimpse of how banks can achieve higher performance through improved services.