Bank of East Asia (00023) has released its interim results for the 2026 fiscal year, reporting interest income of HK$15.506 billion, a decrease of 8.23% year-on-year. The bank's profit attributable to shareholders reached HK$2.416 billion, reflecting a modest increase of 0.37% compared to the same period last year, with basic earnings per share standing at HK$0.91. An interim dividend of HK$0.46 per share has been proposed.

According to the announcement, the bank demonstrated resilient overall revenue performance during the first six months of 2026. Operating profit before provisions increased by HK$901 million, or 16.5%, to HK$6.348 billion. Net interest income grew by HK$353 million, or 4.8%, to HK$7.697 billion. The group's net interest margin narrowed by 3 basis points year-on-year, declining from 1.88% to 1.85%.

Non-interest income rose by 19.0% to HK$3.470 billion. Net fee and commission income increased by 16.1% year-on-year to HK$1.921 billion, primarily driven by higher fees from third-party insurance sales, investment activities, and loan-related businesses. Net profit from trading, financial instrument revaluation, and related hedging also increased by HK$148 million, or 13.2%, benefiting from heightened client trading activity which boosted trading income.

Operating expenses remained stable year-on-year at HK$4.819 billion. The bank continued its investments in talent and digital capabilities while leveraging transformation initiatives to enhance operational efficiency. The cost-to-income ratio improved by 3.7 percentage points to 43.2% during the first half of 2026.

Impairment losses on financial instruments increased by HK$419 million, or 16.5%, to HK$2.958 billion. The group's impaired loan ratio stood at 2.71% as of the end of June 2026, compared to 2.69% at the end of December 2025. Additionally, the group's impairment on investment properties increased by HK$309 million to HK$407 million.