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The Bank of East Asia (23) investor relations material
The Bank of East Asia H2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Profit attributable to owners fell 24.0% year-over-year to HK$3,501 million, with basic EPS at HK$1.22 and return on average equity at 3.1%.
Pre-provision operating profit was stable at HK$11,198 million, while non-interest income surged 28% to HK$5,697 million, driven by higher fees and trading income.
Net interest income declined 7.3% to HK$15,322 million as NIM narrowed by 19 bps to 1.90%.
Operating expenses rose 1.9% to HK$9,821 million, with a cost-to-income ratio of 46.7%.
Impairment losses on financial instruments increased 2.6% to HK$5,642 million, with 77% related to commercial real estate (CRE).
Valuation losses on investment properties rose to HK$723 million; share of losses from associates and JVs was HK$305 million.
Financial highlights
Total operating income grew 0.2% to HK$21,019 million.
Gross advances to customers increased 3.1% to HK$549,279 million; total assets rose 4.9% to HK$920,993 million.
Customer deposits climbed 9.9% to HK$706,579 million; loan-to-deposit ratio improved to 75.3%.
Total equity attributable to owners rose 4.9% to HK$105,335 million.
Common Equity Tier 1, Tier 1, and total capital ratios improved to 24.7%, 24.7%, and 28.2%, respectively.
Average liquidity coverage ratio for Q4 2025 was 182.8%.
Outlook and guidance
Management expects further growth in wealth management and non-interest income, leveraging Hong Kong’s role as a cross-border financial hub.
Asset quality is expected to stabilise in 2026, with continued focus on diversifying the asset base and revenue streams.
The bank aims to build a resilient, sustainable growth platform over the next three years, supported by a strong balance sheet and capital position.
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