Wing Lung Bank yesterday reported a modest 9 per cent increase in attributable profit to $939.10 million for the year to December, and admitted growth had been hurt by Asia's financial crisis.
Total dividends were cut from $1.75 a share in 1996 to $1.60, after directors recommended a final payout of $1.20, down from $1.35.
Shareholders will receive a special 20-cent dividend proposed by directors to celebrate the bank's 65th anniversary.
The bank's charge for bad debts grew 64.2 per cent to $56.41 million, of which about $41 million came from general provisions and the remaining $14 million from specific provisions.
Company secretary Tsang Shung-kwong said the bank did not deliberately boost its general provisions to prepare for potential problems ahead, but wanted to increase them organically as loans grew.
Much of the growth in bottom-line profit came from the more than five-fold increase in net profit on the disposal of long-term investments to $25.02 million.
