Even as negative trends continued to weigh on the global economy, Hong Kong’s renowned lender, The Bank of East Asia Ltd. (“BEA”) (BKEAY.ob, or OTCBB: BKEAY, BKEAY message board) on Tuesday reported beating average street estimates to a 46.8 percent year-on-year growth in consolidated profit for the six month period to June. The lender credited the first half income to gains of 3.23 billion Hong Kong dollars prompted by a significant rebound in the stock market during the period.Consequently, the company’s Board of Directors is now calling for an interim dividend of HK$0.28 per share, reflective of a 33.3 percent rise on an interim dividend of HK$0.21 per share that was paid out to shareholders a year ago.
Also marking a reverse from the firm’s first loss in almost 40 years incurred in the sequential half year period, BEA posted a first half profit of HK$1.17 billion (HK$0.64 a share). For the first half of 2008, its profit was narrower at HK$785 million (HK$0.43 a share), before losing HK$746 million on impairment charges in the second half period in the same year. For the just ended January – June half analysts were looking to a profit of scarcely over HK$1 billion.
The bank’s first half net interest income attributable to its key lending ventures slimmed down 7.2 percent to HK$3.23 billion, from HK$3.48 billion recorded in the tallying period of 2008. On the other hand, its non-interest income over the recent period reached HK$1.72 billion, versus HK$202 million for the first six months of the prior year. BEA is banking on the lowered Hong Kong interbank offered rates (Hibors) to arrest further contraction of the net interest margin which was quoted at 1.77 percent as of June, 2009, down from 1.91 percent at the same time a year earlier.
BEA shares which are traded over the counter on Tuesday closed down nine cents higher at $3.29. The stock has seen a significant 77 percent growth so far this year.
Reference:
http://www.hkbea.com/hk/index.htm
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