The Q1 performance, however, was lower by 9.8% year-on-year.
BOC Hong Kong has reported its net operating income before impairment allowances increased to $13.42b in the first quarter of the year.
This was 16.3% higher compared to the $11.53b recorded in the previous quarter; but lower by 9.8% when compared to the same period last year.
Operating profit before impairment allowances rose 41.9% quarter-on-quarter to $9.65b.
Net fee and commission income increased 43.9% compared to the previous quarter. This was linked to a growth in commission income from securities brokerage, funds distribution and insurance.
Commission income from loans, trust and custody services also increased; but net interest income dropped by 1.8% quarter-on-quarter, if the funding income or cost of reogin currency swap contracts are taken into account.
“This was mainly due to continuously falling market interest rates, which resulted in a narrowing of the loan and deposit spread and net interest margin narrowed 5 basis points compared with the previous quarter,” the group said.
This was offset by a growth in the average interest-earning assets.
Further, operating expenses dropped 20.4% qoq as staff cost, premises and equipment and business-related expenses decreased.
Net charge of impairment allowances decreased by HK$450 million quarter-on-quarter. This decrease was attributable to there being a higher base for comparison as a result of the impairment allowances made in the previous quarter.
