Shares of Bank of East Asia (00023.HK) surged 5.06% in intraday trading after the Hong Kong-based lender reported a 14% increase in first-half profit and declared an interim dividend. The strong performance comes amid a challenging economic environment, showcasing the bank's resilience and operational efficiency.

According to the company's filing, Bank of East Asia's profit attributable to owners reached HK$2.41 billion in the first half of 2025, up from HK$2.11 billion in the same period last year. Earnings per share rose to HK$0.86, compared to HK$0.69 in the previous year, exceeding analysts' expectations of HK$0.80 per share. The bank also announced an interim dividend of HK$0.39 per share, rewarding shareholders for their investment.

Despite the impressive bottom-line growth, the bank faced some headwinds in its core business. Net interest income declined to HK$7.34 billion from HK$8.23 billion in the prior-year period, reflecting the challenging interest rate environment. However, the bank maintained a robust financial position with a Common Equity Tier 1 Capital Ratio of 23.7% and a Net Interest Margin of 1.88% as of the half-year end. These strong metrics, combined with the profit growth and dividend announcement, have fueled investor optimism, driving the stock's significant intraday rally.