BOCHK Posts 9% Profit Growth in First Nine Months, Announces HK$0.29 Dividend
SingTao · 2 SOURCES1 day ago2 MIN
Summary
Bank of China Hong Kong (BOCHK, stock code 2388) reported after-tax profit of HK$351.3 billion for the first three quarters of 2026, marking a 9% year-on-year increase. The third quarter alone saw profit of HK$107.74 billion, down 9.2% from the previous quarter, as net interest margin compressed amid intense deposit competition. The board declared a third interim dividend of HK$0.29 per share, with the ex-dividend date set for November 12 and payment on November 26 .
Key Points
- Pre-provision net operating income reached HK$58.647 billion in the first nine months, up 2.3% year-on-year, supported by a 12.9% rise in net interest income to HK$43.12 billion
- Net interest margin for the third quarter narrowed by 3 basis points to 1.52% quarter-on-quarter, pressured by market rate steepening and fierce deposit competition
- Net fee and commission income declined 7.6% year-on-year to HK$8.435 billion, weighed down by lower commissions from insurance, securities brokerage, and trust services
- Customer deposits totalled HK$3.168 trillion as of September 30, up 7.6% from end-2025, while customer loans increased 7.5% to HK$1.846 trillion
- Net impairment provisions fell by HK$998 million year-on-year to HK$4.125 billion, with the impaired loan ratio standing at 0.93%
Why It Matters
The sequential profit decline in the third quarter underscores the challenges Hong Kong banks face from narrowing margins and slowing fee income, even as deposit growth remains robust. The bank's dividend payout signals confidence in its capital position and may sustain investor interest in Hong Kong's banking sector amid economic uncertainty .
The sequential profit decline in the third quarter underscores the challenges Hong Kong banks face from narrowing margins and slowing fee income, even as deposit growth remains robust. The bank's dividend payout signals confidence in its capital position and may sustain investor interest in Hong Kong's banking sector amid economic uncertainty .