Bank of East Asia's profit plunges 49.9% to $411m in 2019

The decline was attributed to an increase in impairment losses in Mainland China.

The Bank of East Asia (BEA) recorded a 49.9% decline in profits to $411m (HK$3.2b) in Q4 2019 from $835m (HK$6.5b) in 2018 over a significant increase in impairment losses in Mainland China, according to a news release.

Basic earnings per share stood at $0.11 (HK$0.89) that year, down from $0.26 (HK$2.07) in 2018. Operating profit after impairment losses also plunged 63.3% to $321m (HK$2.5b) from $533m (HK$4.3b).

Net profit on sale of assets held for sale in 2019 amounted to $2.3m (HK$18m), mainly contributed by a $13.5m (HK$105m) profit on the disposal of several properties in Hong Kong, partly offset by a loss of $12m (HK$94m) on the disposal of certain subsidiaries in Mainland China and an associated company in Indonesia.

Conversely, net interest income rose by 11.9% to $1.86b (HK$14.5b) as net interest margin increased from 1.73% to 1.85% and average interest-bearing assets grew 4.9%.