BOC HONG KONG (02388) surged over 6% following its earnings release. As of press time, the stock was up 6.53% to HK$37.5 with trading volume of HK$211 million.
On August 29, BOC HONG KONG released its 2025 interim results. Net operating income before impairment provisions reached HK$40.022 billion, representing a 13.26% year-on-year increase. Shareholders' attributable profit totaled HK$22.12 billion, up 10.54% year-on-year. Basic earnings per share stood at HK$2.0952, with the company proposing an interim dividend of HK$0.58 per share.
Net interest income, including funding income or costs from foreign exchange swap contracts, increased year-on-year, driven by growth in average interest-earning assets. Net fee and commission income also rose year-on-year, primarily benefiting from the recovering investment market sentiment, with year-on-year growth in commission income from insurance, securities brokerage, and fund businesses. Net trading gains also increased year-on-year, offsetting the impact of higher operating expenses, net impairment provisions, and net losses from fair value adjustments on investment properties.
Profit for the period reached HK$22.796 billion, an increase of HK$2.333 billion or 11.4% year-on-year. Net interest income for the first half of 2025 was HK$25.063 billion. Including funding income or costs from foreign exchange swap contracts, net interest income totaled HK$28.929 billion, up 0.4% year-on-year, driven by growth in average interest-earning assets. Average interest-earning assets increased by HK$203.871 billion or 5.7% year-on-year.
Net interest margin, including funding income or costs from foreign exchange swap contracts, was 1.54%, down 7 basis points year-on-year, mainly due to market interest rates being lower than the same period last year, resulting in declining asset yields. The Group strengthened deposit pricing and maturity management, actively optimized deposit structure, and promoted growth in savings deposits, partially mitigating the impact of declining market interest rates.