Bad debts hit Malaysian arm

Hongkong Bank Malaysia's profits fell 29 per cent to M$345 million (about HK$703.11 million), as bad debts soared to $249 million, from $38 million in 1996. The bank said it had taken an extra general provision of $98 million, from $21 million, but said it was enjoying growth in interest-earning assets mainly from loans and advances. Net interest income improved by $49 million to $632 million, while its other operating income line jumped $74 million, to $361 million, but specific provisions rose to $151 millionfollowing the currency crisis. Total assets rose $7.2 billion, with cash and short-term funds up $3.2 billion.