Investment and banking lift Asia Financial 18.3pc
Higher earnings at its banking and investment services divisions helped Asia Financial Holdings lift its net profit to HK$175.1 million, an increase of 18.3 per cent from a year earlier.
Attributable profit at the group's investment services arm rose 237 per cent from a year earlier to HK$60.7 million.
Group deputy managing director Bernard Charnwut Chan said the increase was partly attributable to the sale of shares in Hong Kong Exchanges and Clearing, which generated an exceptional gain.
At Asia Commercial Bank (ACB), the group's banking division, attributable profit increased 63.3 per cent to HK$52.88 million.
ACB executive director and general manager Stephen Tan said the bank was able to achieve a 10 per cent increase in loans despite fierce competition on the market.
Last year, loans and advances at ACB amounted to HK$7.68 billion. Customer deposits were up 5 per cent from a year earlier to HK$11.23 billion, resulting in a loan-to-deposit ratio of 63.1 per cent.
Provision for bad and doubtful debts decreased 14.2 per cent to HK$94.04 million.
Mr Tan said ACB hoped to maintain a free-banking policy after interest-rate deregulation in July, although it would take into account the actions of other banks.
'We will see how other banks react to the relaxation of interest-rate regulation,' he said.
Mr Tan said the bank planned to introduce insurance and stockbroking services after the second half of this year in a move to boost non-interest income.
'We also expect to roll out an online stockbroking service before the end of the year,' he said.
At the group's insurance division, net profit declined 40 per cent from a year earlier to HK$48.6 million, despite a 4 per cent increase in turnover to HK$365 million.
Mr Chan attributed the decline in profit to fierce competition in the insurance sector in Hong Kong.
