Fubon Bank (Hong Kong) H1 Net Profit Up 24% to HK$887 Million, Net Interest Income Rises 16%
Fubon Bank (Hong Kong) reported a 24.26% year-on-year increase in first-half net profit to HK$887 million. Net interest income grew 16% to HK$1.564 billion, while the net interest margin held at 1.7%. Non-interest income rose 16% to HK$274 million, driven by insurance, credit-related, and financial marketing businesses. The impaired loan ratio stood at 0.76% with a coverage ratio of 77.4%.
Fubon Bank (Hong Kong) announced that its net profit for the first half of the year reached HK$887 million, up 24.26% year on year. The average return on equity rose from 8.47% to 9.78%, while the average return on assets increased from 0.86% to 0.89%.
Net interest income for the period grew 16% year on year to HK$1.564 billion, with the net interest margin maintained at 1.7%, narrowing by 2 basis points from a year earlier. Driven by strong performance across several business lines, non-interest income increased 16% to HK$274 million. Among these, insurance business revenue rose 50%, credit-related business income increased 40%, and net gains from financial marketing activities grew 29%. However, mark-to-market losses on hedging instruments due to market volatility partially offset the positive contributions from these gains.
As of the end of June, the bank's impaired loan ratio was 0.76%, with an impaired loan coverage ratio of 77.4%. Both the common equity tier 1 capital ratio and the tier 1 capital ratio stood at 16.86%.