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Hong Kong largest banks post higher H1 net income, increase provisions

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Hong Kong largest banks post higher H1 net income, increase provisions

Hong Kong's three largest banks by assets reported higher net income for the first half compared to a year earlier, as growth in net interest income offset a decline in fee and commission revenue.

Among the trio, Standard Chartered Bank (Hong Kong) Ltd. reported the highest year-over-year growth in net income for the six months ended June 30. The Hong Kong unit of Standard Chartered PLC reported a net income of HK$6.74 billion, up 13.93% from a year earlier.

It was followed by a 3.22% year-over-year increase in net income at Hongkong & Shanghai Banking Corp. Ltd., the Hong Kong unit of HSBC Holdings PLC, and a 2.40% rise at BOC Hong Kong (Holdings) Ltd., the Hong Kong unit of Bank of China Ltd.

As China's economic growth slows further and global trade friction continues, all three banks increased their provisions against bad loans during the first half. Standard Chartered Bank (Hong Kong) set aside 0.25% of average net loans to customers held at amortized cost as provisions, up from 0.04% a year earlier, the sharpest increase among the three lenders.

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