BOC Hong Kong (02388) announced that for the first nine months of 2025, the group's net operating income before impairment allowances increased by 6.3% year-on-year to HK$57.179 billion. Net interest income, including funding income or costs from foreign exchange swap contracts, declined by 0.7% YoY to HK$43.3 billion, while the net interest margin narrowed by 8 basis points to 1.54%, primarily due to lower market interest rates compared to the same period last year, reducing asset yields. The group strengthened deposit pricing and maturity management, actively optimizing deposit structure and promoting growth in low-cost deposits, partially mitigating the impact of declining market rates. Net fee and commission income rose by 22.1% YoY to HK$9.051 billion, driven by improved investment market sentiment. The group capitalized on strong client demand for wealth management by enhancing financial product offerings and integrated service capabilities, leading to higher brokerage, insurance, fund distribution, and management fee income. Credit card, trust, custody, and payment service commissions also increased. Net trading income grew YoY, supported by higher global market trading revenue. Operating expenses rose by 1.9%, mainly due to higher personnel costs, IT investments, and advertising expenses. The cost-to-income ratio stood at 22.05%, maintaining a favorable level in the local banking sector. Net impairment allowances increased by HK$1.8 billion YoY to HK$5.123 billion, attributed to downgrades in internal credit ratings for certain clients and deterioration in specific non-performing accounts. The annualized credit cost for customer loans and other items rose by 0.14 percentage points YoY to 0.40%.