New | HK banking sector profits grow 8.7pc in 2016 but officials still advise caution
Hong Kong Monetary Authority says sector remains resilient, but adds ‘in 2017, the macro environment will be more challenging’
Hong Kong’s banking industry grew its overall profits last year, according to official figures, though the regulator warned of a more challenging environment for the rest of this year.
The Hong Kong Monetary Authority (HKMA), the city’s de facto central bank, said that pre-tax operating profits of banks in Hong Kong grew by 8.7 per cent last year compared with 2015, turning around 2014’s 3.6 per cent decline in profits.
Arthur Yuen Kwok-Hang, the HKMA’s deputy chief executive, said the progress last year was on the back of rising loan growth within Hong Kong, in mainland China, and further afield.
Total loans extended by Hong Kong banks increased by 6.5 per cent compared to 2015, with mortgage lending increasing by 4.2 per cent. Net interest margins were unchanged at 1.32 per cent.
Yuen said that Hong Kong’s banking sector “remained resilient”, but despite the ostensibly impressive figures, he advised caution in the face of a rising interest rate environment in the US.