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BOC Hong Kong FY'16 net profit edges up 1.9% YOY

BOC Hong Kong (Holdings) Ltd. posted a 1.9% year-over-year increase in net profit for the full year ended Dec. 31, 2016.

Profit attributable to equity holders from continuing operations increased to HK$24.20 billion, or HK$2.29 per share, from HK$23.76 billion, or HK$2.25 per share, in 2015.

Including discontinued operations, the bank's net profit for 2016 jumped to HK$55.50 billion, or HK$5.25 per share, from HK$26.98 billion, or HK$2.55 per share, in the prior year. Operating results of Nanyang Commercial Bank Ltd., Chiyu Banking Corp. Ltd. and assets held for sale were reported as discontinued operations.

Net operating income before impairment allowances increased year over year to HK$41.75 billion from HK$40.18 billion, while operating profit rose to HK$28.96 billion from HK$27.82 billion.

Meanwhile, net interest income inched up to HK$25.43 billion from HK$25.18 billion in 2015. Net fee and commission income slipped to HK$10.54 billion from HK$11.27 billion.

As of Dec. 31, 2016, the group's net interest margin dropped to 1.32% from 1.46% in the prior-year period.

The impaired loan ratio decreased to 0.20% at the end of Dec. 31, 2016 from 0.23% at the end of Dec. 31, 2015.

The group's common equity Tier 1 capital ratio clocked in at 17.64% at the end of 2016, up from 12.83% at the end of 2015. The Tier 1 capital ratio increased to 17.69% from 12.89%, while the total capital ratio rose to 22.35% from 17.86%.

The board also declared a final dividend of 62.5 Hong Kong cents per share for 2016, down from 67.9 cents per share for 2015. Together with an interim dividend of 54.5 cents and a special dividend of 71 cents per share, the total dividend of 2016 amounted to HK$1.88 per share, up from HK$1.22 in the prior year.

Subject to shareholder approval, the final dividend is payable July 14 to shareholders of record as of July 7.

BOC Hong Kong is a unit of Bank of China Ltd.