East Asia Bank announced a second interim dividend of HK$0.22 per share, marking a 42% decrease from the previous year. According to RTHK, Co-Chief Executive Li Man Bun attributed the reduced dividend to one-time factors, including losses from mainland joint ventures and associates. He expressed optimism that as these impacts dissipate, profitability will return to normal, leading to a rebound in dividends.
Last year, East Asia's net interest margin narrowed by 19 basis points to 1.9%. Co-Chief Executive Li Min Qiao noted that the margin improved in the latter half of the year. He anticipates that the U.S. Federal Reserve may cut interest rates in June and September, but expects loan demand to rise, maintaining a stable margin in the first half of the year.
Li Min Qiao highlighted the bank's proactive efforts to develop non-interest income last year, which helped offset declines in net interest income. Looking ahead, the bank plans to capitalize on corporate expansion overseas and the growing demand for wealth management services to drive profit growth.
As of the end of last year, East Asia Bank's total workforce stood at 7,669, a reduction of 192 employees since June, with 112 fewer staff in Hong Kong. Li Min Qiao stated that there are no plans for layoffs this year. Instead, the bank will continue leveraging technology to enhance operational efficiency and is actively recruiting personnel such as client relationship managers.