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Daisy Wu

Bank of China (Hong Kong), one of the city’s three note-issuing banks, reported a 7.1 per cent year-on-year increase in first-half net profit, as lower impairment charges and a wider net interest margin helped offset continued pressure on lending margins from falling Hong Kong interbank rates.
Profit attributable to shareholders came to HK$23.74 billion (US$3 billion) for the six months to June 30, or HK$2.2453 per share, according to a stock exchange filing on Friday. The result beat analysts’ average estimate of HK$22.94 billion.
BOCHK’s net interest margin, including income from foreign exchange swap contracts, stood at 1.57 per cent, versus 1.54 per cent a year earlier.
“We will further optimise our management in Southeast Asia and build a leading regional headquarters,” said Sun Yu, vice-chairman and chief executive of BOCHK, at a press conference on Friday.
Sun added that BOCHK would actively support national strategies and Hong Kong’s development, while striving to “continue creating enhanced value for shareholders and stakeholders”.
Credit costs also eased during the period, supporting the lender’s bottom line after elevated impairment charges in recent years.
For the first half, the net charge of impairment allowances came to HK$2.38 billion, down 26.9 per cent from about HK$3.26 billion a year earlier, with the impaired loan rate at 0.89 per cent, versus 1.02 per cent at the end of June 2025.
Hong Kong lenders have navigated a broader transition as monetary policy pivots away from the elevated rate environment that had previously bolstered margins, while commercial real estate exposures in Hong Kong and mainland China continue to demand close monitoring.
To mitigate margin pressure, lenders industry-wide had narrowed cost-to-income ratios and leaned further into fee-based business, according to a KPMG review of Hong Kong’s banking sector published in June, even as credit quality across the sector remained broadly stable.
Net fee and commission income fell 5.8 per cent to HK$5.98 billion, mainly because commission income from insurance and trust and custody services declined 40.5 per cent and 22 per cent, respectively.
The decline was partly offset by stronger wealth management activity. Commission income from funds distribution and funds management increased 55.1 per cent and 78.2 per cent, respectively, while credit card commission income rose 12.2 per cent amid a recovery in local retail spending.
The bank’s insurance business also recorded stronger sales, with the value of standard new premiums increasing 27.9 per cent year on year to HK$18.96 billion, while its contractual service margin rose 23.6 per cent from the end of 2025.
The lender continues to broaden its offshore yuan offerings, tapping the city’s role as the leading renminbi deposit pool outside the mainland to secure a bigger share of outbound capital and trade.
“We are leveraging Hong Kong’s position as the primary offshore renminbi hub to capture growing capital flows from mainland enterprises expanding overseas,” Sun said.
He added that the bank would continue to expand its suite of cross-border trade settlement and treasury management products to solidify its market-leading position in the regional renminbi business.
The board declared an interim dividend of HK$0.8188 per share, up from HK$0.58 in the first half of 2025.
It also approved a three-year shareholder return programme for 2026 to 2028, including plans to distribute additional shareholder returns of no less than HK$10.5 billion over the period.
The results come after BOCHK completed its five-year strategic plan, with return on average shareholders’ equity reaching 13.18 per cent in the first half of 2026, compared with 12.86 per cent a year earlier.
BOCHK’s shares closed up 2.27 per cent at HK$50.97 on Friday before the announcement, while the benchmark Hang Seng Index was flat.


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Bank beats forecast with HK$23.74 billion profit, helped by reduced credit costs and stronger fee income from wealth and insurance


Bank beats forecast with HK$23.74 billion profit, helped by reduced credit costs and stronger fee income from wealth and insurance.


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Bank of China (Hong Kong)

BOCHK posts higher profit as lower credit costs offset margin pressure

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Bank beats forecast with HK$23.74 billion profit, helped by reduced credit costs and stronger fee income from wealth and insurance

Bank beats forecast with HK$23.74 billion profit, helped by reduced credit costs and stronger fee income from wealth and insurance