Financial Performance - The Bank of East Asia reported a net interest income of HKD 15,322 million for the year ended December 31, 2025, a decrease of 7.3% from HKD 16,529 million in 2024[3] - Non-interest income increased to HKD 5,697 million, up 28.0% from HKD 4,450 million in the previous year[3] - The total operating income for 2025 was HKD 21,019 million, slightly up from HKD 20,979 million in 2024[3] - The net profit for the year was HKD 3,532 million, down 23.8% from HKD 4,629 million in 2024[4] - Basic earnings per share decreased to HKD 1.22 from HKD 1.52 in the previous year, reflecting a decline of 19.7%[4] - The total comprehensive income for the year was HKD 7,114 million, compared to HKD 4,553 million in 2024, marking a substantial increase[5] - The company reported a net profit of HKD 3,501 million for the year ended December 31, 2025, compared to HKD 4,608 million in 2024, reflecting a decrease of approximately 24%[7] - Operating profit before tax for the year was HKD 4,527 million, down from HKD 5,840 million in 2024, indicating a decline of about 22%[9] - The total interest income for 2025 was HKD 33,076 million, down from HKD 39,570 million in 2024, representing a decrease of approximately 16.4%[10] - The total interest expense decreased to HKD 16,078 million in 2025 from HKD 22,481 million in 2024, marking a reduction of about 28.5%[10] Assets and Liabilities - Total assets increased to HKD 920,993 million, up 4.9% from HKD 877,759 million in 2024[6] - Customer deposits rose to HKD 706,579 million, an increase of 9.9% from HKD 643,093 million in 2024[6] - The bank's cash and cash equivalents increased significantly to HKD 53,994 million, up 30.8% from HKD 41,304 million in 2024[6] - The company’s total equity as of December 31, 2025, was HKD 105,631 million, a slight increase from HKD 105,739 million in 2024[7] - The total amount of customer loans and advances increased to HKD 543.235 billion in 2025 from HKD 527.829 billion in 2024, reflecting a growth of about 2.9%[33] - The total amount of customer loans and advances amounted to HKD 549,279 million in 2025, with an overall mortgage percentage of 48.85%, down from HKD 532,931 million and 52.84% in 2024[35] Customer Deposits and Loans - Customer deposits increased by HKD 63,486 million, compared to an increase of HKD 14,495 million in 2024, showing strong growth in customer funding[9] - Total customer loans increased by 3.1% to HKD 549.279 billion, while total customer deposits rose by 9.9% to HKD 706.579 billion[83] - Total customer loans and advances in Hong Kong amounted to HKD 257,115 million in 2025, with a mortgage percentage of 75.41%, compared to HKD 250,994 million and 77.06% in 2024[35] - Total customer loans and advances in mainland China reached HKD 160,257 million in 2025, with a mortgage percentage of 19.18%, slightly up from HKD 159,199 million and 22.29% in 2024[36] Operating Expenses and Income - The total operating expenses increased to HKD 9.821 billion in 2025, compared to HKD 9.634 billion in 2024, representing a rise of approximately 1.9%[28] - The net profit from trading activities rose to HKD 1.982 billion in 2025, compared to HKD 1.421 billion in 2024, marking an increase of approximately 39.4%[23] - The net performance of financial instruments measured at fair value through profit or loss showed a profit of HKD 113 million in 2025, a significant improvement from a loss of HKD 35 million in 2024[24] Dividends and Share Repurchases - The total dividend declared for 2025 was HKD 1,609 million, compared to HKD 1,815 million in 2024, indicating a decrease of about 11.3%[16] - The board announced a second interim dividend of HKD 0.22 per share for the year ending December 31, 2025, compared to HKD 0.38 for the second interim dividend in 2024[67] - The company repurchased approximately 35 million shares at a total cost of HKD 3.43 billion during 2024, including direct transaction costs[8] Risk Management and Compliance - The company emphasizes a strong risk management culture, with all employees responsible for managing risks[114] - The company has established a comprehensive risk governance and management framework to ensure effective risk management[124] - The company is committed to improving cybersecurity defenses to protect against evolving threats[120] - The company has developed controls and monitoring procedures to manage credit risk in line with regulatory requirements[133] - The company is actively managing credit risk by closely monitoring market developments and strategically adjusting the credit portfolio structure, particularly in the commercial real estate sector[138] Strategic Initiatives and Future Outlook - The "OneBank" strategy aims to enhance cross-border services, providing seamless online and offline experiences for retail and corporate clients[74] - The bank is focusing on wealth management as a key growth pillar, investing in sales teams and enhancing the investment product range[74] - The bank plans to enhance its non-interest income growth and expand its wealth management expertise over the next three years[77] - The bank's focus on digital transformation and operational efficiency is expected to enhance competitiveness and drive business growth[93] - The bank is exploring potential acquisitions in the Greater Bay Area to enhance its market presence[148]

Economic Data - The People's Bank of China will release January CPI and PPI on February 11 [1] - The National Bureau of Statistics will publish the monthly report on January commodity residential sales price index on February 13 [1] - Financial data including January social financing and new RMB loans will also be released next week [1] - In the US, December retail sales month-on-month will be announced on February 10, followed by January unemployment rate and non-farm employment data on February 11 [1] Earnings Reports - The US earnings season continues with several notable companies reporting next week, including BP, Barclays, Marriott, Coca-Cola, and AstraZeneca on February 10 [2] - Other companies such as NetEase, Youdao, and Total will report on February 11, while TripAdvisor and Hyatt will report on February 12 [2] - In Hong Kong, SMIC will report earnings on February 10, followed by Budweiser APAC and NetEase Cloud Music on February 11 [2] New Stock Issuance - One new stock, Tongbao Optoelectronics, will be available for subscription on February 9, with Ai De Technology listing on the Beijing Stock Exchange on February 10 [2] - Several new stocks will list in Hong Kong, including Lanke Technology on February 9 and Aixin Yuanzhi on February 10 [2] Stock Unlocking - A total of 33 restricted stocks will be unlocked next week, with a total market value exceeding 36 billion yuan, led by Hunan YN with 24.096 billion yuan [3][10] Central Bank Operations - The central bank will have 4.055 billion yuan of reverse repos maturing next week, with specific amounts maturing each day [3][10] Government Bonds - The Ministry of Finance will issue the first phase of RMB government bonds in Hong Kong on February 11, with a scale of 14 billion yuan [13]

Group 1 - The National Financial Regulatory Administration has approved the revised articles of association for East Asia Bank (China) Limited [1][2][3] - The approval was communicated through a formal notice, indicating compliance with relevant regulations [2][3] - The bank is required to promptly handle the necessary changes as per the approval [3]

Core Viewpoint - The recent court ruling clarifies the liability boundaries of banks selling trust products, indicating that banks must share responsibility for investors' losses due to inadequate risk warnings and failure to fulfill suitability obligations [1][2]. Group 1: Legal Implications - The court found that the bank failed to conduct a proper assessment of the investor's risk tolerance and did not provide sufficient risk warnings during the sales process, leading to a ruling that the bank must bear joint liability for 8% of the investor's losses [2]. - Multiple cases have emerged where banks were held accountable for not adequately fulfilling their suitability obligations, reflecting a trend in judicial practice that emphasizes the importance of these responsibilities [2][3]. Group 2: Industry Transformation - The nature of bank trust product sales is shifting from being viewed as low-risk "channel business" to a more specialized service that includes substantive reviews and full-process management [1][3]. - The breaking of implicit guarantees in trust products has led to a re-evaluation of the responsibilities of banks, pushing them towards a model that emphasizes professional service and risk management [3][4]. Group 3: Regulatory Changes - New regulations, such as the "Commercial Bank Agency Sales Business Management Measures," set to take effect in October 2025, impose stricter requirements on banks regarding the sale of non-standard assets and private investment funds [6][7]. - These regulations aim to enhance the suitability obligations and proactive management responsibilities of banks, requiring comprehensive evaluations and ongoing monitoring of product risks [7]. Group 4: Market Dynamics - The decline in deposit rates is driving a shift in asset allocation towards more diversified yield-generating products, creating opportunities for trust companies to develop family trusts and service trusts [4][5]. - The need for transparency and effective communication with investors is becoming increasingly critical, as investors demand clear information about product risks and performance [5][6].

Core Viewpoint - East Asia Bank announced a temporary halt in logistics and shipping during the Chinese New Year holiday from February 6, 2026, to February 24, 2026, while gift redemption on its equity platform will continue as usual [1] Group 1 - Logistics will stop shipping from February 6, 2026, to February 24, 2026, due to the upcoming Chinese New Year holiday [1] - Physical product shipping is expected to resume after February 25, 2026 [1] - Virtual products that require in-store redemption may be affected by store operating hours during the holiday [1]

Group 1 - JD.com (SWR 89618) has the highest short-selling ratio at 85.52%, followed by AIA Group (R 81299) at 77.11% and Lenovo Group (R 80992) at 67.79% [1][2] - Tencent Holdings (00700) leads in short-selling amount with 2.709 billion yuan, followed by Pop Mart (09992) at 974 million yuan and Xiaomi Group (W 01810) at 793 million yuan [1][2] - Huatai Securities (06886) has the highest deviation value at 40.23%, followed by Tong Ren Tang Technologies (01666) at 35.46% and China Ship Leasing (03877) at 26.75% [1][2] Group 2 - The top ten short-selling ratios include JD.com at 85.52%, AIA Group at 77.11%, and Lenovo Group at 67.79% [2] - The top ten short-selling amounts show Tencent Holdings at 2.709 billion yuan, Pop Mart at 974 million yuan, and Xiaomi Group at 793 million yuan [2] - The top ten deviation values are led by Huatai Securities at 40.23%, followed by Tong Ren Tang Technologies at 35.46% and China Ship Leasing at 26.75% [2]

Core Insights - The Chinese financial industry is undergoing a structural transformation characterized by a dual opening-up approach, where both domestic and foreign banks are enhancing their capabilities and market integration [1][2] Group 1: Domestic Banks Going Global - Chinese banks are shifting their focus from merely establishing overseas branches to enhancing their operational capabilities, aligning with the global market [3] - The overseas expansion of Chinese banks is increasingly focused on high-value areas such as wealth management and cross-border finance, moving beyond traditional markets to emerging regions like ASEAN, the Middle East, Africa, and Latin America [3][4] - State-owned banks remain the primary players in overseas expansion, while joint-stock banks are concentrating their efforts in key financial hubs like Hong Kong and London, focusing on niche areas such as private banking and wealth management [3] Group 2: Foreign Banks Entering China - Foreign banks are transitioning from a focus on obtaining licenses and expanding branch networks to a strategy centered on professional depth and long-term commitment, particularly in wealth management and cross-border finance [5][6] - As of June 2025, there are 42 foreign banks operating in China, with a non-performing loan ratio of 1.07%, which is lower than the overall commercial bank average of 1.49% [5] - Foreign banks are increasingly establishing flagship wealth management branches in major cities, emphasizing privacy, professionalism, and brand presence to differentiate themselves in the competitive market [6]

Group 1 - The core announcement is that Bank of East Asia (China) Limited will conduct system maintenance on February 7, 2026, from 10:00 AM to 12:30 PM Beijing time, during which related services will be suspended [1] - The maintenance will affect services including the query and download of personal comprehensive monthly statements through electronic channels [1] - The bank expresses apologies for any inconvenience caused and appreciates customer understanding and support [1]

Core Insights - In January 2026, the number of existing property mortgage applications in Hong Kong reached 8,022, a significant increase of 2,940 applications (57.9%) compared to December 2025, marking a 31-month high [1] - The number of pre-sale property mortgage applications was 381, up by 78 applications (25.7%) from December 2025, also reaching a three-month high [1] - Compared to the same period last year, existing property mortgage applications increased by 3,821 applications (91%), while pre-sale property mortgage applications decreased by 15 applications (3.8%) [1] Group 1: Existing Property Mortgages - The existing property mortgage applications in January 2026 showed a notable rise, attributed to new buyers from projects like Anli Court and Anhua Court [1] - The current interest rates are maintained at reasonable levels, and property prices in Hong Kong have stabilized significantly, leading to a reduction of over 30% in negative equity cases, the lowest in nearly nine quarters [1] - Positive factors are expected to enhance market confidence among users and investors, with projections indicating a steady increase in transaction volumes and continued growth in existing and pre-sale mortgage applications [1] Group 2: Market Share of Mortgage Banks - Bank of China Hong Kong (02388) maintained the top position in existing property mortgage market share with 30.4%, followed by HSBC at 22.2%, Hang Seng Bank at 13.7%, Standard Chartered at 8%, and Bank of East Asia at 4.8% [2] - In the pre-sale property mortgage market, HSBC ranked first with a market share of 26.8%, while Bank of China Hong Kong dropped to second with 23.9% [2] - The market share of the four major banks in existing property mortgages increased from 67.8% to 74.3% in January 2026, indicating a rebound in property prices and consumer confidence [2]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2026年1月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 東亞銀行有限公司 | | | 呈交日期: | 2026年2月2日 | | | I. 法定/註冊股本變動 | 不適用 | | FF301 II. 已發行股份及/或庫存股份變動及足夠公眾持股量的確認 1. 股份分類 普通股 股份類別 不適用 於香港聯交所上市 (註1) 是 證券代號 (如上市) 00023 說明 已發行股份（不包括庫存股份）數目 庫存股份數目 已發行股份總數 上月底結存 2,641,430,142 0 2,641,430,142 增加 / 減少 (-) 0 0 本月底結存 2,641,430,142 0 2,641,430,142 足夠公眾持股量的確認(註4) | 根據《主板上市規則》第13.32D(1)條或第19A.28D(1)條 / 《GEM上市規則》第17.37D(1)條或第25.21D(1)條，我們在此確認，就上述所列股份類別而言，截至本月底 ...