Bank of China HK net profits up 6.1% to HK$14.42b in H1

Interim dividend is HK$0.447 per share.

Bank of China Hong Kong’s profit after tax rose to HK$14.42b in the first six months of 2022, its latest interim results showed. This is 6.1% higher than in H1 2021 and a 26.4% jump from net profits reported in H2 2021.

Profit attributable to equity holders was HK$13.47b, up 7.1% compared to H1 2021. The board has declared an interim dividend per share of HK$0.447.

After adjusting for foreign exchange swap-related impact, net interest income in the first half of the year would have increased by 8.7% to HK$17.66b, whilst net interest margin would have been 1.13%. In the second quarter, net interest  margin in the second quarter was 1.19%, up 11 basis points from Q1. 

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Net operating income before impairment allowances was HK$27.23b, 8.7% higher from H1 2021.

However, net fee and commission income fell 22.7% to HK$5.14m. This is 22.7% lower than H1 2021 and a slight drop of 1.4% from the second half of last year. 

Total deposits from customers rose 3% during the period, whilst advances to customers also increased by 5.1% compared to H2 2021. 

Average interest-earning assets expanded by 5.4% year-on-year, the interim report showed.

Classified or impaired loan ratio was 0.46%, below market average.