Liu Chong Hing Bank, a family-run lender, said first-half net profit rose 30 per cent on increased deposits and interest income.
Net profit for the six months to June rose to HK$248.8 million from HK$191.9 million a year earlier as net interest income jumped 24 per cent to HK$441 million. Operating profit grew 28 per cent to HK$289.5 million.
Liu Chong Hing is adding branches and hiring more staff as it profits from the growing local economy and increased stock market activity that has pushed the Hang Seng Index up 17 per cent this year.
The bank's deposits increased 15 per cent in the first six months while other operating income jumped 33.78 per cent to HK$137.1 million driven by the lender's securities business.
'Our strategy in the second half is to further expand our customer base to capture more deposits and help us to cross-sell our products,' executive director Frank Jin Shui-sang said.
Operating expenses increased 16.89 per cent on marketing and added staff. Net interest margin widened three basis points to 1.68 per cent compared with the second half last year as interest income rose in a competitive environment in which some lenders cut rates to attract customers.
