Bank of East Asia profit soars to HK$6.1b

Bank of East Asia (BEA), Hong Kong’s largest locally-owned bank, said net attributable profit last year rose to HK$6.1 billion, up 39 per cent on the HK$4.5 billion net profit in 2011.

Analysts had expected a more modest rise of about 20 per cent.

BEA, which is controlled by the family of David Li Kwok-po, said its net interest income rose by HK$461 million, or 5 per cent, to HK$9.7 billion.

Li said in a statement that economic conditions had stabilised in the third quarter of last year and investment sentiment improved, “leading to a strong recovery from financial markets from September”.

He said the number of outlets operated in China had risen to 114 at the end of last year, from 28 in March 2007, adding that the bank planned a rationalisation programme this year to ‘drive efficiency, control costs and focus resources where they will generate higher returns”.

He said the bank’s international operations reported record profits during the period and asset quality improved significantly.