Bank of East Asia's net profit surges
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The net profit of Hong Kong- based Bank of East Asia surged to 2.57 billion HK dollars (329.5 million U.S. dollars) in 2009, in part thanks to the strength of its mainland operations, the bank announced on Thursday.
The results were in line with market estimates that the net profit of Hong Kong's largest local bank will surge from the modest 39 million HK dollars (5 million U.S. dollars) in 2008, when the bank suffered heavily from the financial crisis.
David Li, chairman and chief executive of the group, said BEA China, already contributing 43.6 percent of the group's tax before profit, achieved a significant increase in both personal and corporate deposits in 2009.
The total deposits of BEA China grew by 28 percent year on year in 2009.
"This will lower the cost of funding, and provide a more reliable platform for our lending business," Li said.
Li said the group would continue to improve the network in the Chinese mainland and customer support infrastructure in 2010.
The Chinese mainland would continue to be the main growth engine for the global economy in 2010 and BEA China was ideally positioned to benefit from the closer cross-boundary financial ties.
The price of BEA's Hong Kong-listed shares surged by 0.8 HK dollar, or 3 percent, to close at 27.5 HK dollars on Thursday following the announcement during the lunch break.
Analysts attributed the rise to the final dividend of 0.48 HK dollar per share recommended by the board, which brought the total dividend for the year to 0.76 HK dollar. The full-year dividend of the bank was 0.23 HK dollar for 2008.
The Bank of East Asia was the largest local bank in Hong Kong.
