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RETAIL BANKING | Staff Reporter, Hong Kong
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Chart of the Week: Check out how profitable Hong Kong banks were in 2017

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. 

Also read: US tightening buoys Hong Kong's banking profitability

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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