BEA wins big in Macau

The Bank of East Asia Group (BEA) has posted a record profit of HK$6.7 billion, representing an increase of HK$48 million or 0.7 per cent compared with the HK$6.6 billion reported for 2013.
In a filing with the Hong Kong Stock Exchange yesterday the bank also declared a second interim dividend of HK$0.68 per share for the twelve months ended December 31, 2014.
The bank’s Macau branch registered a 38.6 per cent rise in net profit for 2014, its strongest performance since its establishment in 2001.
‘The success of BEA’s efforts in Macau lies in the bank’s strategy of increased cross-border business co-operation with BEA China, and a higher penetration into the corporate and retail sectors of the local market,’ the filing reads.
David Li Kwok-po, the bank’s chairman and chief executive, said that slower growth in China led to decreased spending by mainland tourists in Hong Kong. “As a result, domestic retail sales were weak while the unemployment rate edged slightly higher during the year. Property prices continued to increase, although overall market activity remained subdued due to the government’s cooling measures,” he said, adding that the overall operating environment is expected to remain “challenging” in 2015.
China operations will remain the bank’s key driver of business growth and a source of new customers, according to the filing. “While the Central Government’s economic restructuring programme should continue to adversely affect asset quality and net interest margins in the mainland’s banking industry, we will explore new opportunities as we continue to invest in BEA China,” Mr. Li said.