High street banking gets even more profitable in Hong Kong
Operating profits of retail banks grew 13.9 per cent in the first three quarters because of a sharp rise in their income from lending, HKMA data shows
High street banking in Hong Kong has become even more profitable this year, according to the latest figures from the Hong Kong Monetary Authority.
Aggregate pre-tax operating profits of retail banks’ Hong Kong offices grew by an annual 13.9 per cent in the first three quarters of this year because of a sharp rise in their income from lending.
Banks lent more this year, and this lending was more profitable.
Lending by retail banks in the city was up by 12.8 per cent in the first nine months of 2017, compared to the same period last year, thanks to growth both within Hong Kong and outside, and the average net interest margin on this lending rose to 1.43 per cent, from 1.32 per cent.
A bank’s net interest margin is the difference between the interest it pays on deposits and receives on loans as a proportion of its total lending.
This trend seems set to continue.
