BOC HONG KONG(02388) 智通财经网·2025-03-26 13:26Core Viewpoint - Bank of China Hong Kong (02388) anticipates pressure on net interest margin this year due to a declining interest rate environment, while managing controllable risks in commercial real estate [1][2] Group 1: Financial Performance - The bank's net interest income and net interest margin performed well last year, but the current environment poses significant challenges [1] - As of the end of 2024, customer real estate-related loans totaled HKD 336.2 billion, down 8.5% from the previous year, accounting for 20% of total customer loans, a decrease of 1.6 percentage points [1] - Non-residential enterprise loans amounted to HKD 250.9 billion, down 8.8% year-on-year, representing 14.96% of total customer loans, a decline of 1.2 percentage points [2] Group 2: Loan Quality and Risk Management - The bank maintains a non-performing loan ratio of 1.37%, which has increased by 1.24 percentage points from the previous year, primarily due to downgrades in loans to certain local SMEs in Hong Kong [2] - The non-performing loan ratio for domestic real estate enterprises is 7.3%, down 2.6 percentage points year-on-year, with a provision coverage ratio of 85.8%, an increase of 15.7 percentage points [2] - The bank is committed to prudent provisioning policies to ensure adequate coverage and maintains confidence in outperforming the market in terms of overall loan asset quality [2] Group 3: Market Conditions and Strategies - The bank's management highlights several pressures faced by developers, including high vacancy rates in office buildings and repayment capacity challenges due to high-interest environments [3] - The bank aims to protect its rights while working collaboratively with clients to find feasible solutions during challenging times [3] - Some developers are converting secured loans into unsecured loans, with pricing strategies being assessed based on market conditions and client situations [3]