THE Hong Kong Chinese Bank (HKCB) and the Union Bank of Hong Kong both announced interim results yesterday at the high end of market expectations.
HKCB reported a 42.3 per cent growth in net profit, to $44.77 million. Earnings per share fell from 10.5 cents to eight cents, a decline attributed to the increase in the number of shares from 300 million to 500 million.
The conversion of warrants at the beginning of the period increased the number of shares to 599 million, further diluted earnings. The interim dividend was unchanged at four cents.
HKCB said local banks had benefitted immensely from the continued growth in the economy, particularly in trade financing, which had been boosted by the increase in re-export volumes.
It expects its close relationship with China Resources, which holds 50 per cent of the bank, to bring in more customers and help it make inroads into the China market.
The bank opened a representative office in Shanghai in April.
The new joint-venture bank in Shenzhen, Chinese Mercantile Bank, in which it has a 40 per cent stake, will open in September.