Banking analysts lauded Liu Chong Hing Bank's 24.6 per cent profit growth to $460 million as a pleasant little surprise.
Boosted by a much widened net interest margin and respectable 17 per cent loan growth, the bank's net interest income shot up strongly by 31.8 per cent to $667.4 million.
The net interest margin expanded from 2.89 per cent in 1994 to 3.28 per cent in 1995, thanks to the more efficient use of interest-free funds.
A bigger exposure to the China market, which commanded higher lending rates, also helped fatten the interest spread.
Executive director Nam Lee-yick said: 'We have better asset and liability management.' The bank's Swatow branch in China reported a handsome profit of $9.4 million in its second year of operation.
Operating income grew by only 21.6 per cent, dragged down by a 10.9 per cent drop in other operating income.
Non-interest income declined from $158.9 million to $141.6 million.
