HK-based Bank of East Asia's first-half profit tumbles 75%

The Bank of East Asia

21/08/2019 05:36

HONG KONG, Aug 21 (Reuters) - Hong Kong-based Bank of East
Asia Ltd (BEA)  0023.HK  posted a 75% slump in first-half net
profit after increased impairment losses in mainland China
because of a downturn in commercial property markets outside
China's top cities. 
    BEA, which counts Hong Kong and China as its main markets,
posted a net profit of HK$1 billion ($127.50 million) for the
Jan-June period, versus HK$3.99 billion a year earlier, the
lender said in a statement to the Hong Kong stock exchange.
    It had previously issued a profit warning for the half year,
saying it expected to write down four loans with a nominal value
of HK$6.2 billion, and take a loss, after tax, on the loans of
between HK$2.5 billion and HK$3 billion.  urn:newsml:reuters.com:*:nL4N23L0YV 
    The bank has survived as an independent lender in a market
that is dominated by HSBC Holdings  HSBA.L , Bank of China (Hong
Kong)  2388.HK  and Standard Chartered  STAN.L , while several
of Hong Kong's other family-owned firms have been put up for
sale amid deteriorating business conditions.
    The business conditions have been hit further in recent
months amid protests in the Chinese-controlled territory.
($1 = 7.8432 Hong Kong dollars)

 (Reporting by Alun John and Felix Tam; Editing by Himani Sarkar
and Muralikumar Anantharaman)
 ((Alun.John@thomsonreuters.com; +852-28415827;))