Mortgage agency expects better year after 1992 dip

HONGKONG Building and Loan Agency, which came under the control of the Hongkong Chinese Bank this month, yesterday reported a one per cent drop in profit to $26.65 million for last year.

Turnover fell by 21 per cent to $63.79 million. Earnings per share were $2.09, compared with $2.11.

The company will pay a final dividend of 75 cents a share, making a total of $1.10 for the year.

As a subsidiary of Hongkong Chinese Bank, it expected to benefit from additional resources to expand its business in the second-hand property mortgage market.

Despite the dampening effects of the 70 per cent mortgage limit and the Sino-British political dispute, the company said rising incomes, lower property prices and low interest rates had made residential property more affordable.

Prior to the takeover by HKCB, China Strategic Investment had attempted to take control of Hongkong Building and Loan, but failed due to opposition from a group of bank lenders, including HKCB.

Only seven weeks after that takeover attempt collapsed, HKCB bid to acquire from Pacpo Holdings its 67.62 per cent stake in Hongkong Building and Loan.

In turn, HKCB placed a 10 per cent interest in Hongkong Building and Loan to China Resources (Holdings).