BEA (00023) year profit down 32.6% to HK$3.72bn; div HK$0.28

    The Bank of East Asia (BEA) (00023) said its profit attributable to owners of the parent for the year ended 31 December 2016 dropped 32.6% year-on-year to HK$3,723 million.
  Basic and diluted earnings per share were HK$1.21.
  Net interest income from continuing operations amounted to HK$11,098 million, a decrease of 7% from a year earlier. Net interest margin narrowed from 1.66% in 2015 to 1.60% in 2016, largely due to pressure on BEA China's net interest margin, which decreased from 1.82% to 1.65%.
  Operating profit before impairment losses from continuing operations was HK$6,508 million, a decrease of 6.5%, when compared to 2015.
  The total capital ratio, tier 1 ratio, and common equity tier 1 ratio were 17.4%, 13.5%, and 12.1%, respectively, as at 31 December 2016. The average liquidity coverage ratio for the quarter ended 31 December, 2016 was 137.2%, which was well above the statutory limit of 70% for the year 2016.
  Due to the persistently weak economic environment, impairment losses on loans and receivables from continuing operations grew by 70.4% to HK$3,462 million. The Group's impaired loan ratio rose from 1.13% at the end of 2015 to 1.49% at the end of 2016. The impaired loan ratios of Hong Kong Operations and China Operations rose from 0.34% to 1.03% and from 2.44% to 2.64%, respectively.
  The Board has declared a second interim dividend of HK$0.28 (2015: HK$0.5) per share, payable on or about 30 March 2017with an option to receive new, fully paid shares in lieu of cash.