Group 1 - The number of existing property mortgages in April 2025 was 3,446, down 14.2% from March's 4,015, marking a five-month low and a decline for two consecutive months [1] - The number of pre-sale property mortgages in April 2025 was 467, a decrease of 34.1% from March's 709, also reaching a three-month low after four months of increases [1] - Compared to the same period last year, existing property mortgages in April 2025 decreased by 17.3% from 4,166 in April 2024, while pre-sale mortgages increased by 151.1% from 186 in April 2024 [1] Group 2 - In the first four months of 2025, existing property mortgages totaled 17,055, an increase of 6.5% from 16,016 in the same period last year [1] - Pre-sale property mortgages in the first four months of 2025 reached 2,241, a significant increase of 300.2% from 560 in the same period last year, marking a three-year high [1] - The Chief Vice President of the mortgage referral department indicated that the decline in mortgage numbers was due to a lack of large new property launches in April, but overall property registration numbers have been rising [1] Group 3 - In terms of market share for existing property mortgages, Bank of China (Hong Kong) ranked first with 27.4%, followed by HSBC at 17.6% and Hang Seng Bank at 11.1% [2] - For pre-sale property mortgages, Bank of China (Hong Kong) also led with a market share of 25.5%, followed by HSBC at 18.6% and Hang Seng Bank at 11.3% [2] - The market share of the four major banks for existing property mortgages dropped to 62.3% in April 2025, a seven-month low, indicating potential adjustments in market share among banks [2]

Financial Performance - Profit attributable to owners of the parent increased by 11.9% to HK$4.608 billion in 2024, up from HK$4.118 billion in 2023[20]. - Basic earnings per share rose by 15.2% to HK$1.52, compared to HK$1.32 in the previous year[20]. - The bank's net profit increased by 11.9%, reaching HK$4,118 million for the year[39]. - Basic earnings per share for 2024 were HK$1.52, up from HK$1.32 in the previous year[71]. - The Group reported a profit attributable to shareholders of HK$4.608 billion in 2024, an increase of 11.9% from HK$4.118 billion in 2023[71]. Asset and Deposit Growth - Total consolidated assets reached HK$877.8 billion (US$113.0 billion) as of December 31, 2024, representing a 2.0% increase from HK$860.4 billion in 2023[10]. - Total customers' deposits and certificates of deposit issued increased by 1.3% to HK$664.7 billion from HK$656.2 billion[20]. - Total customers' deposits and certificates of deposit issued were HK$664,671 million, showing a recovery from HK$656,216 million in 2023[32]. - Total deposits from customers rose by 2.3% to HK$643.093 billion, with savings deposits increasing by 14.2%[78]. Loan and Credit Metrics - Total loans and advances to customers and trade bills amounted to HK$534.4 billion, a 0.4% increase from HK$532.5 billion in 2023[20]. - The impaired loan ratio rose to 2.72% from 2.69% in 2023[20]. - The loan-to-deposit ratio was maintained at 80%[32]. - The loan-to-deposit ratio stood at 80.2% at the end of December 2024, down from 81.1% at the end of 2023[79]. Operational Efficiency - The cost-to-income ratio slightly increased to 45.9% from 45.5% in 2023[20]. - Operating expenses increased by HK$202 million, or 2.1%, to HK$9.634 billion, with a cost-to-income ratio of 45.9%[76]. - The cost-to-income ratio improved due to strict cost discipline and productivity gains from ongoing digital transformation initiatives[145]. Digital Banking and Innovation - The bank's digital banking platforms, including the revamped BEA Mobile app, saw significant customer adoption, with expectations for digital revenue growth to outpace other channels[48]. - The revamped BEA Mobile app saw a positive user response, driving higher revenue and facilitating 84% of retail transactions through unmanned channels[112]. - The newly launched digital trading platform, BEA SmarTrade, provides a one-stop solution for trading Hong Kong, US, and Chinese Mainland A shares[140]. - The fintech collaboration platform, BEAST, has enabled the bank to develop AI-driven analytics and operations, enhancing risk and compliance management[50]. Strategic Initiatives - The OneBank strategy aims to enhance cross-boundary banking experiences, leading to a marked increase in new-to-bank accounts and assets under management[44][45]. - The OneBank initiative will continue to be a key focus, aiming to strengthen collaboration across business units and explore cross-border business opportunities[168][176]. - The bank is leveraging its unique OneBank platform to facilitate cross-boundary flows of people, payments, and commerce while continuing to digitalize operations[56]. Market and Economic Context - The Chinese Mainland economy achieved a growth target of 5.0% in 2024, slightly down from 5.2% in 2023[93]. - Hong Kong's economy grew by 2.5% in 2024, supported by a rebound in merchandise exports despite weak private consumption[94]. - The global economy is forecasted to grow by 3.3% in 2025, with risks from trade protectionism and geopolitical tensions[95]. Employee Development and Culture - The bank's workforce as of December 31, 2024, totaled 7,880 employees, down from 8,140 a year earlier, indicating ongoing adjustments in organizational structure[180][188]. - The employee survey response rate for 2024 reached 99%, with 91% of employees expressing enthusiasm and pride in working for the bank[190]. - The bank is committed to upskilling employees, with over 300 GBA specialists trained in 2024, enhancing capabilities in technology and data analytics[185][186]. Risk Management and Compliance - The bank's risk management framework emphasizes a sound risk culture, ensuring all employees are responsible for risk management[195]. - The Group aims to maintain a robust capital adequacy position to support business growth, adhering to regulatory and internal capital ratios[198]. - The Group is committed to having sufficient funds to meet all obligations during crisis scenarios, ensuring business continuity[199].

Group 1 - East Asia Asset Management and East Asia Bank have launched the "East Asia Smart All-Weather Fund" to provide diversified investment options for wealth enhancement [1] - The fund targets a distribution yield of 5.5% to 6%, with the first distribution scheduled for May 14 [1] - The minimum investment amount for the fund is HKD 10,000, and it can be subscribed in USD and RMB equivalents [1] Group 2 - The fund's asset allocation includes 30% to 70% in equities, 30% to 70% in bonds, 0% to 15% in commodities, 0% to 20% in real estate investment trusts, and 0% to 30% in cash [1] - As of February 5, the simulated portfolio distribution was 49.9% in equities, 35.1% in bonds, 9.9% in alternative investments, and 5.1% in cash [2] - The fund's equity holdings consist of 29.1% in US stocks, 13.8% in European stocks, and 7% in Asia-Pacific stocks [2]

Group 1 - The core viewpoint emphasizes the promotion of healthy development of the private economy and the internationalization of the RMB through leveraging Hong Kong's advantages as a financial center [1] - Suggestions include Hong Kong becoming a "super service provider" for domestic tech companies looking to expand internationally [1] - The proposal highlights the need for enhanced cloud computing capabilities and regulatory improvements for AI in the financial sector [1] - Recommendations for advancing the offshore RMB hub in Hong Kong include promoting RMB international settlement and expanding investment channels [1] - Support for innovative financial development in Qianhai is suggested, including allowing "dual-headquarters" enterprises to freely allocate funds within certain limits [1] Group 2 - East Asia Bank plans to increase support for private enterprises, with annual credit support exceeding 50 billion yuan [2] - The bank aims to raise the proportion of credit to private enterprises from 30% to around 50% [2] - The introduction of transaction banking products, particularly in supply chain finance, will provide convenience for private enterprises [2] - Efforts will be made to shorten the financing chain for private enterprises by optimizing loan processes and adjusting interest rates based on risk [2]

Investment Rating - The report maintains an "OUTPERFORM" rating for Bank of East Asia [2] Core Views - The bank's revenue, pre-provision operating profit, and net profit attributable to equity holders increased by +1.1%, +0.3%, and +11.9% respectively in 2024 [3][14] - The bank's dividend per share (DPS) rose by 27.8% year-on-year from HKD 0.54 to HKD 0.69 [3][14] - The net interest margin (NIM) for 2024 was 2.09%, down by 5 basis points year-on-year but up by 6 basis points compared to the first half of 2024 [5][16] - The overall impaired loan ratio increased to 2.72%, up by 3 basis points year-on-year [6][16] - Non-interest income increased by 14.9% year-on-year, driven mainly by trading gains and changes in fair value [8][16] Financial Performance Summary - Net interest income for 2024 was HKD 16,529 million, a decrease of 2.0% from the previous year [2][12] - The bank's return on equity (ROE) improved to 4.0%, up by 0.4 percentage points year-on-year [3][14] - The cost-to-income ratio rose to 45.9%, an increase of 0.4 percentage points year-on-year [8][16] - The bank's total loans increased slightly by 0.2% year-on-year, with Hong Kong loans decreasing by 0.8% and mainland loans increasing by 0.5% [5][16] Valuation - The target price for 2025 is set at HKD 11.80, based on a price-to-book (P/B) ratio of 0.30 times [4] - The estimated net profit attributable to equity holders for 2025 is projected to grow by 7.8% year-on-year [4][12]

Investment Rating - The report maintains an "OUTPERFORM" rating for Bank of East Asia [2] Core Views - The bank's revenue, pre-provision operating profit, and net profit attributable to equity holders increased by +1.1%, +0.3%, and +11.9% respectively in 2024 [3][15] - The bank's dividend per share rose by 27.8% year-on-year from HKD 0.54 to HKD 0.69 [3][15] - The net interest margin (NIM) for 2024 was 2.09%, down by 5 basis points year-on-year but up by 6 basis points compared to the first half of 2024 [5][17] - The overall impaired loan ratio increased to 2.72%, up by 3 basis points year-on-year [6][17] - Non-interest income increased by 14.9% year-on-year, primarily driven by trading gains and changes in fair value [8][17] Financial Performance Summary - Net interest income for 2024 was HKD 16,529 million, a decrease of 2.0% from the previous year [4][13] - The bank's return on equity (ROE) increased to 4.0%, up by 0.4 percentage points year-on-year [3][15] - The cost-to-income ratio rose to 45.9%, an increase of 0.4 percentage points year-on-year [8][17] - The bank's total loans increased slightly by 0.2% year-on-year, with Hong Kong loans decreasing by 0.8% and mainland loans increasing by 0.5% [5][17] Valuation - The target price for the bank is set at HKD 11.80, based on a price-to-book (P/B) ratio of 0.30 for 2025 [4] - The estimated net profit attributable to equity holders for 2025 is projected to grow by 7.8% year-on-year [4][13]

Financial Performance - The Bank of East Asia reported a net profit of HKD 4,629 million for the year ended December 31, 2024, an increase of 11.9% compared to HKD 4,136 million in 2023[4]. - Basic and diluted earnings per share rose to HKD 1.52, compared to HKD 1.32 in 2023, marking a growth of 15.2%[4]. - The total comprehensive income for the year was HKD 4,553 million, compared to HKD 4,296 million in 2023, an increase of 6.0%[6]. - The company reported a profit of HKD 4,608 million for the year ended December 31, 2024, compared to HKD 4,118 million in 2023, representing a year-over-year increase of 11.9%[10]. - Operating profit before tax for the year was HKD 5,840 million, an increase from HKD 5,310 million in 2023, reflecting a growth of 9.9%[12]. Income and Expenses - Net interest income decreased slightly to HKD 16,529 million in 2024 from HKD 16,874 million in 2023, reflecting a decrease of 2.0%[3]. - Non-interest income increased to HKD 4,450 million, up 15.0% from HKD 3,872 million in the previous year[3]. - Operating expenses totaled HKD 9,634 million in 2024, up from HKD 9,432 million in 2023, with employee costs rising to HKD 5,616 million from HKD 5,445 million[36]. - The company reported a total tax expense of HKD 1,211 million for 2024, compared to HKD 1,174 million in 2023, with current tax in Hong Kong increasing to HKD 647 million from HKD 419 million[41]. Assets and Liabilities - Total assets increased to HKD 877,759 million, up from HKD 860,361 million in 2023, representing a growth of 2.3%[8]. - Total liabilities increased to HKD 772,020 million in 2024, compared to HKD 740,000 million in 2023[70]. - The company’s total equity increased to HKD 105,739 million as of December 31, 2024, from HKD 106,346 million at the beginning of the year[10]. Customer Loans and Deposits - Customer loans and advances remained stable at HKD 527,829 million, slightly up from HKD 526,984 million in 2023[8]. - Customer deposits increased to HKD 643,093 million, compared to HKD 628,598 million in the previous year, reflecting a growth of 2.3%[8]. - Total customer loans and advances amounted to HKD 532,931 million in 2024, a slight increase from HKD 532,111 million in 2023[44]. Dividends and Share Repurchases - The bank declared a dividend of HKD 0.69 per share, up from HKD 0.54 per share in 2023, indicating a 27.8% increase[4]. - The total dividend declared for the year was HKD 1,815 million, up from HKD 1,434 million in 2023[21]. - The company repurchased approximately 35 million shares at a total cost of HKD 3.43 billion, compared to HKD 3.67 billion for about 36 million shares in 2023[11]. Risk Management - The company is closely monitoring macroeconomic conditions and asset portfolios to manage risks, particularly in light of potential geopolitical tensions and regional conflicts affecting global trade and economic performance[182]. - The company has implemented measures to mitigate credit risk, including enhanced credit controls for high-risk industries and stress testing for capital adequacy and loan loss provisions[182]. - The group actively manages various types of risks, including credit, interest rate, market, liquidity, operational, reputation, strategic, legal, compliance, and technology risks[175]. Strategic Initiatives - The OneBank strategy aims to provide seamless cross-border banking experiences, leveraging the integration of Hong Kong into the Greater Bay Area[104]. - The company aims to diversify its customer base and actively seek new cross-border business growth opportunities, particularly in Beijing, Shanghai, and the Greater Bay Area[126]. - The newly launched digital trading platform, East Asia Investment Connect, received positive feedback from customers, facilitating easier trading of Hong Kong, US, and mainland A-shares[133]. Sustainability and Corporate Governance - The bank aims to achieve net-zero operational emissions by 2030 and net-zero financing emissions by 2050, with specific reduction targets set for high carbon-emitting industries[150]. - The group is committed to sustainable development, considering environmental and social factors in financing and investment decisions[162]. - The company is focusing on environmental, social, and governance (ESG) risks by adopting new climate risk assessment mechanisms and conducting regular climate risk stress tests[183].

Group 1 - Guangzhou Rural Commercial Bank and East Asia Bank have launched the Cross-Border Wealth Management Connect 2.0 (Southbound) business in the Guangdong-Hong Kong-Macao Greater Bay Area, aiming to provide convenient and diverse asset management solutions for clients in the region [1][2] - The Cross-Border Wealth Management Connect business allows investors in the Greater Bay Area to purchase qualified investment products offered by East Asia Bank through a closed-loop funding channel established with Guangzhou Rural Commercial Bank, including 11 types of currency deposits and over 260 qualified funds [1][2] - This collaboration marks a significant milestone in the cooperation between the two financial institutions and represents a new starting point for the interconnection of financial markets in the two regions [2] Group 2 - Guangzhou Rural Commercial Bank, established in 1952 and transformed into a rural commercial bank in 2009, has over 1.3 trillion RMB in total assets as of the end of 2023, ranking among the top 1000 banks globally and top 100 in China [2] - East Asia Bank, founded in 1918, has total assets of 875.2 billion HKD (approximately 112.1 billion USD) as of June 30, 2024, and operates around 120 branches globally, providing comprehensive corporate banking, personal banking, wealth management, and investment services [3]

Group 1 - The core viewpoint of the news is the launch of the Cross-Border Wealth Management Connect 2.0 (Southbound) business by Guangzhou Rural Commercial Bank in collaboration with East Asia Bank, aimed at enhancing asset management solutions for clients in the Greater Bay Area [1][2] - This initiative signifies a significant step in financial services collaboration between the two banks, promoting regional economic integration and facilitating capital flow within the Greater Bay Area [1][2] - The Cross-Border Wealth Management Connect business allows investors in the Greater Bay Area to purchase qualified investment products offered by East Asia Bank through a closed-loop funding channel established with Guangzhou Rural Commercial Bank, including 11 types of currency deposits and over 260 qualified funds [1] Group 2 - Guangzhou Rural Commercial Bank is the first bank outside of East Asia Bank's group to collaborate on the Cross-Border Wealth Management Connect, marking a milestone in financial market connectivity between the two regions [2] - The bank has a strong local presence with a network of 570 branches and subsidiaries across 8 provinces and 1 city, and its total assets exceeded 1.3 trillion RMB by the end of 2023 [2] - East Asia Bank, established in 1918, is a leading financial services group in Hong Kong with total assets of HKD 875.2 billion (approximately USD 112.1 billion) as of June 30, 2024, and a global network of around 120 branches [3]

Financial Performance - For the half year ended 30 June 2024, the profit attributable to owners of the parent was HK$2,111 million, a decrease of 20% from HK$2,636 million for the same period in 2023[5]. - The operating profit before impairment losses for the same period was HK$5,671 million, slightly down from HK$5,688 million in 2023[5]. - Basic earnings per share decreased to HK$0.69 from HK$0.87 in the previous year, reflecting a decline of approximately 20.7%[10]. - Net profit for the first half of 2024 was HK$2,121 million, a decrease of 19.6% compared to HK$2,638 million in the same period of 2023[11]. - Total comprehensive income for the first half of 2024 was HK$1,969 million, slightly up from HK$1,901 million in the first half of 2023[11]. Income and Expenses - The net interest income for the six months ended 30 June 2024 was HK$8,228 million, compared to HK$8,045 million in the same period last year, indicating a growth of 2.3%[9]. - The cost-to-income ratio increased to 45.9% from 44.7% in the previous year, suggesting a rise in operating expenses relative to income[5]. - Operating expenses totaled HK$4,813 million, an increase from HK$4,588 million in the previous year, representing a rise of 4.9%[37]. - Interest income for the six months ended June 30, 2024, was HK$20,379 million, up from HK$18,856 million in the same period of 2023, reflecting a growth of 8.0%[29]. - Interest expense for the six months ended June 30, 2024, was HK$12,151 million, compared to HK$10,811 million in the same period of 2023, an increase of 12.4%[32]. Assets and Liabilities - Total assets as of 30 June 2024 were HK$875,217 million, an increase from HK$872,069 million at the end of June 2023[6]. - Total liabilities as of June 30, 2024, were HK$752,035 million, reflecting a slight increase from previous periods[91]. - Total loans and advances to customers and trade bills increased to HK$536,979 million, up from HK$533,077 million in 2023[6]. - Total cash and cash equivalents at June 30, 2024, were HK$83,764 million, a decrease from HK$98,866 million at the end of June 2023, reflecting a decline of 15.3%[16]. - The bank's cash and balances with banks decreased to HK$39,988 million as of June 30, 2024, down from HK$45,903 million at the end of 2023[39]. Loans and Advances - The impaired loan ratio was 2.62%, slightly up from 2.56% in the previous year, indicating a slight deterioration in asset quality[6]. - Loans and advances to customers reached HK$535,310 million, with impairment allowances of HK$4,917 million, compared to HK$532,111 million and HK$5,127 million respectively at the end of 2023[45]. - The total impaired advances to customers were HK$14,016 million, with specific provisions of HK$3,791 million as of June 30, 2024[59]. - The total gross carrying amount of loans and advances to customers is HK$532,111 million, with impairment allowances of HK$5,127 million[130]. - The credit quality analysis shows that HK$9,796 million is classified as Special Mention, indicating potential credit risk[130]. Dividends and Shareholder Returns - The interim dividend declared was HK$0.31 per share, down from HK$0.36 per share in the previous year, reflecting a decrease of 13.9%[5]. - Proposed dividends increased to HK$817 million from HK$477 million, reflecting a positive outlook for shareholder returns[95]. Capital and Liquidity - Common Equity Tier 1 capital increased to HK$84,351 million as of June 30, 2024, from HK$83,590 million at the end of 2023, reflecting a growth of 0.9%[194]. - Total capital rose to HK$112,224 million as of June 30, 2024, compared to HK$106,362 million at the end of 2023, marking an increase of 5.2%[194]. - The liquidity coverage ratio for the second quarter of 2024 improved to 271.0%, up from 208.9% in the second quarter of 2023[199]. - The leverage ratio remained stable at 10.3% for both June 30, 2024, and December 31, 2023[198]. - The total capital ratio improved to 22.8% as of June 30, 2024, compared to 22.0% at the end of 2023[194]. Impairment and Provisions - Impairment losses on financial instruments increased to HK$2,881 million, compared to HK$2,492 million in the prior year, indicating a rise of 15.6%[37]. - The impairment allowance for loans and advances to customers at June 30, 2024, totaled HK$5,172 million, compared to HK$6,756 million at January 1, 2024[159]. - The total impairment allowances for loans and advances amount to HK$5,127 million, indicating a significant credit risk exposure[133]. - The total impairment allowances for loan commitments were HK$108 million, with HK$93 million for 12-month ECL and HK$15 million for lifetime ECL not credit-impaired[144]. Market and Investment - Investment securities increased to HK$182,899 million, compared to HK$167,270 million, marking a growth of 9.4%[12]. - The fair value reserve for debt instruments showed a net change in fair value of HK$915 million, compared to HK$765 million in the previous year[11]. - The fair value of the Group's investment in AFFIN Bank Berhad was HK$3,287 million, exceeding the carrying value of HK$2,969 million, resulting in no impairment charge[66]. - The total gross carrying amount of debt investment securities measured at amortised cost was HK$22,381 million, with impairment allowances of HK$14 million[147]. Risk Management - The bank's credit risk management includes monitoring significant increases in credit risk based on internal and external ratings[135]. - The 12-month expected credit loss (ECL) for loans and advances is HK$24,047 million, while the lifetime ECL not credit-impaired is HK$14,334 million[133]. - The market value of collateral held against impaired loans and advances to customers was HK$6,259 million as of June 30, 2024[127]. - The total amount of other liabilities, including accrued interest payable, was HK$49,010 million as of June 30, 2024, compared to HK$47,312 million at December 31, 2023[78].