Average NIMs of the largest lenders from 1.43% in 2016 to 1.54% last year.
The average net interest margins (NIM) of Hong Kong's largest banks rose from 1.43% in 2016 to 1.54% as of end-2017 as funding costs remained low, according to accounting firm KPMG.
Retail deposit rates of banks grew at a slower pace, offsetting the upward adjustment of the Base Rate to 1.75% by the Hong Kong Monetary Authority.
Hang Seng Bank and HSBC had the highgest NIM out of their peers as of end-2017 at 1.94% and 1.88% respectively.
CITIC’s NIM also rose from 1.47% in 2016 to 1.73 % in 2017, primarily due to closer collaboration with its parent bank and higher asset yields.
On the other hand, ICBC (Asia) witnessed flat NIM growth due to a decrease in ratio of interest-bearing assets witih long-term maturity.
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