BANK OF E ASIA(HK:00023)2026-02-13 04:00Financial 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]