ADVERSE market conditions and increased operating costs hit Jardine Fleming Bank cutting its profit for last year 23.5 per cent to HK$68.5 million.
Losses in securities dealing and higher operating expenses were the culprits behind the profit decline for the firm which specialises in treasury activities and money market trading.
Securities dealing incurred a loss of $722,000 in 1994 compared to a gain of $46 million in 1993.
Although fees and commission income and foreign exchange trading reported a steady growth, the loss in securities pushed other operating income down from $147.5 million in 1993 to $135.8 million last year.
Overall operating income rose slightly by 7.4 per cent to $243.6 million, only to be dragged down by higher operating expenses which rose 29 per cent from $120.5 million to $155.6 million.
Staff cost soared 40 per cent from $71.8 million to $101 million. That was exacerbated by another 24.7 per cent increase on rental of premises. Provisions for bad and doubtful debts rose from nil in 1993 to $7 million last year.
