BOCHK posts higher profit as lower credit costs offset margin pressure
Bank of China (Hong Kong) reported a 7.1% year-on-year rise in first-half net profit to HK$23.74 billion as lower credit impairment charges offset margin pressure from falling Hong Kong interbank rates.
Source: South China Morning Post · August 28, 2026 at 11:01 AM · AI-assisted report
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KUALA LUMPUR, HONG KONG, 28 AUGUST 2026 —
Bank of China (Hong Kong) reported a 7.1% year-on-year rise in first-half net profit to HK$23.74 billion as lower credit impairment charges offset margin pressure from falling Hong Kong interbank rates.
Market Impact
Profit attributable to shareholders came to HK$2.2453 per share for the six months to June 30, beating the average analyst estimate of HK$22.94 billion. Net interest margin increased to 1.57% from 1.54% a year earlier, but remained under pressure as interbank rates declined.
Credit impairment charges fell 26.9% to HK$2.38 billion, lowering the impaired loan rate to 0.89% from 1.02% a year earlier. The bank said the reduction in credit costs supported earnings after elevated impairment charges in recent periods.
Fee-based income declined 5.8% to HK$5.98 billion as commission from insurance and trust services dropped 40.5% and 22%, respectively. Wealth management commissions rose 55.1% for fund distribution and 78.2% for fund management, while credit card commissions gained 12.2% on stronger retail spending. The insurance business recorded a 27.9% year-on-year increase in standard new premiums to HK$18.96 billion, with its contractual service margin up 23.6% since end-2025.
BOCHK declared an interim dividend of HK$0.8188 per share, up from HK$0.58 in the first half of 2025. The board also approved a three-year shareholder return programme for 2026 to 2028, targeting additional returns of at least HK$10.5 billion. Return on average shareholders’ equity reached 13.18% in the first half, compared with 12.86% a year earlier.
The bank’s shares rose 2.27% to HK$50.97 on Friday before the results were released, while the benchmark Hang Seng Index ended flat.
Related: Bank of China (Hong Kong) Ltd. (BOCHK)