The lender has yet to fully integrate systems with its $4.8b acquisition
The benefits derived from the acquisition of Chekiang First Bank will not be fully reflected in Wing Hang Bank's earnings until next year, according to chairman and chief executive Patrick Fung Yuk-bun.
In August last year, Wing Hang bought Chekiang from Japan's Mizuho Financial Group for $4.8 billion, doubling its assets overnight to become Hong Kong's sixth-largest lender. Chekiang began contributing profits from September 30 last year.
'There will be more synergies from the merger in the future and we are confident that full integration benefits will be achieved by the end of 2005,' Mr Fung said. 'Some of our information-technology systems have not been fully integrated and we still haven't realised some of the cross-selling opportunities in the mainland.'
Mr Fung was speaking after unveiling the bank's interim result that showed the cost-income ratio rose to 41.7 per cent from 32 per cent a year ago. He said the figure would come down as more synergies from the merger kicked in.
Wing Hang also suffered a $6.97 million one-time loss from the disposal of several investments made by Chekiang before the merger.