Kwong On lives up to forecasts of analysts
Kwong On Bank, which was listed on the stock exchange last year, said its attributable profit grew 2.1 per cent to $453.7 million for the year to December, in line with analysts' forecasts.
Earnings per share were $1.33 and a final 39 cents a share dividend was recommended. Redevelopment of the 31-branch bank's head office saw operating costs soar 26.3 per cent to $428 million.
Kwong On, which is 51.13 per cent owned by Fuji Bank, estimated the head office construction work would be completed by the end of next year, at a cost of $450 million.
Rental expenditure, management fee and relocation expenses for the year reached $34.7 million.
The snowballing investments in effect suppressed Kwong On's bottom line earnings, having considered its 16.2 per cent growth in net interest income.