BOCHK reports 6.1% higher net operating profit for Q3

There were reportedly more business opportunities as tourism recovered.

Bank of China Hong Kong (BOCHK) reported an operating profit before HK$14.23b for Q3 2024, up 6.1% compared to Q2, its latest financial report showed.

Net operating income before impairment allowances of HK$53.815b, higher by 10.7% YoY than in H1 2023.

Net fee and commission  income decreased by 1.9%, which the bank blamed on a drop in commission income from loans and securities brokerage.

Income from insurance, funds distribution, currency  exchange, bills, trust and custody services, and payment services increased.

Net trading gain increased on a quarter-on-quarter basis, mainly attributable to the increase in the net trading gain from foreign exchange and foreign exchange products.

If the funding income or cost of foreign currency swap contracts were included,  net interest margin would have widened by 1 basis point (bp) compared with the previous quarter to 1.63%, BOCHK said.

H1 net operating income up 10.7%
For the first nine months of 2024, its operating profit was HK$41.44b, 13.4% year-on-year (YoY) higher compared to the same period in 2023.

Net operating income before impairment  allowances rose by 10.7% compared to the same period last year, whilst that of the third quarter increased by 5.3% from the previous quarter.

BOCHK attributed the overall growth to business opportunities resulting from the resumption of commercial activities and renewed impetus in tourism.

BOCHK said that it consolidated its high-end and cross-border customer base, and enhanced its product and service capabilities in insurance and funds. These reportedly more than offset the impact from dampened credit demand.

As a result, net fee and commission income increased by 2.7% compared with H1 2023.

Total assets up 7.5%
BOCHK’s total assets are nearly HK$4.16t as of end-September, higher by 7.5% compared to the end of 2023.

Deposits from customers have risen by 8.6% year-to-date to HK$2.719t. CASA deposits and time deposits also rose.

Advances to customers amounted to HK$1.67t, down 1.9%.

Impaired loan ratio stood at 1.11%, below the market average.