THE Liu Chong Hing Bank reported a five per cent transfer to its inner reserves yesterday, despite a respectable 27.9 per cent increase in its profit for 1994.
The amount was the lowest transfer in percentage terms among all local banks.
The 31-branch Liu Chong Hing Bank posted a profit of $369.1 million, up from $288.4 million last year. Its profit, after transfer to inner reserves, of $350.6 million was close to its forecast earnings of $350 million upon flotation.
The bank's low transfer rate surprised most analysts.
Apart from Ka Wah Bank, which transferred 5.6 per cent of its profit, other transfer rates lay between nine and 23 per cent.
The bank substantially increased its provision for bad and doubtful debts from $75,000 in 1993 to $15.1 million in 1994.
Executive director Nam Lee-yick said: 'Besides preparing for the challenging year ahead, provisioning is a modern version of an inner reserve.' The bank stood out from competitors because it pushed its deposit rates on deregulated time deposit accounts drastically upward.
