Hong Kong’s banks gird for leaner times ahead as 9-month profit growth slows on rate cuts

Quick Summary:

Net interest margin narrowed to 1.5 per cent last year from 1.68 per cent in 2023, according to HKMA data.

Adding pressure to banks’ balance sheets, the proportion of bad or doubtful loans has risen, as more businesses grappled with higher funding costs amid a shaky economy.The ratio widened to 1.99 per cent of total lending as of September, compared with 1.89 per cent in June, 1.5 per cent at the end of 2023, 1.4 per cent in 2022 and 0.88 per cent in 2021.

Commercial banks in the city have followed the moves by cutting the borrowing cost for their best customers by 62.5 basis points since.

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Article Details

Author / Journalist: Enoch Yiu

Category: Business

Markets: Hong Kong

Topics: Interest Profit Hong Rate Year 2023 Cent Banks September Three Cuts

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-01-22 @ 16:22:44 (3 hours ago)

News Timezone: GMT +8:00

News Source URL: scmp.com

Language: English

Article Length: 344 words

Reading Time: 2 minutes read

Sentences: 6 lines

Sentence Length: 58 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © SCMP

News ID: 25339039

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