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Finance

Bank of East Asia

  • 28.85 HKD
  • +0.20
  • +0.70%
  • Hong Kong
    Aug 16, 2018
  • Ticker
    HKG(23)
  • Prev. close
    28.65
  • Market cap (HKD)
    80,439.07M
  • Market cap (USD)
    10,247.60M
  • Shares
    2,807.64M

Company Background

Bank of East Asia, an independent Hong Kong-based bank, has more than 200 branches around the world, primarily in the Greater China region -- mainland China, Taiwan and Macau.

It was established in 1918. In 2007, The Bank of East Asia, the U.K.'s HSBC and Citibank of the U.S. were the first foreign lenders to get permission from the China Banking Regulatory Commission to establish Chinese subsidiaries.

The Bank of East Asia maintains a good relationship with the Chinese government as it was quicker than its competitors to offer yuan services.

The bank also has a strategic alliance with the online WeBank, which is affiliated with Tencent, one of China's big three Internet players.

In 2014, it increased its capital through a third-party allocation of shares to Sumitomo Mitsui Banking, making the Japanese bank its largest shareholder, ahead of Spain's CaixaBank and the Guoco Group of Malaysia.

Chairman and CEO David Li Kwok-po is a business tycoon who had served as a member of the Legislative Council of Hong Kong. His first and second sons serve as deputy chief executives at the bank. The Li family has produced political and business leaders.

Business Summary

Bank of East Asia Ltd. engages in the provision of banking, financial, business, corporate, and investor services. It operates through the following segments: Personal Banking, Corporate Banking, Treasury Markets, Wealth Management, Financial Institutions, Other Hong Kong Banking Operations, Mainland China Operations, Overseas Operations, Corporate Services, and Others. The Personal Banking segment handles branch operations, personal internet banking, consumer finance, and property loans and credit card business. The Corporate Banking segment includes corporate lending and loan syndication, asset based lending, commercial lending, and securities lending in Hong Kong. The Treasury Markets segment involves in the treasury operations and securities dealing. The Wealth Management segment offers private banking business and related assets. The Financial Institutions segment provides trade financing activities with correspondent banks. The Other Hong Kong Banking Operations segment manages the insurance business, trust business, securities and futures broking, money lender activities, and corporate financial advisory in Hong Kong. The Mainland China Operations segment consists of the back office unit for China operations in Hong Kong, branches and subsidiaries in China, except those subsidiaries carrying out corporate services, data processing, and back office operations and associates operated in China. The Overseas Operations segment includes back office unit for overseas operations in Hong Kong, overseas branches and subsidiaries, except those subsidiaries carrying out corporate services, and associates operated in overseas. The Corporate Services segment covers the company secretarial services, share registration and business services, and offshore corporate and trust services. The Others segment comprises of insurance business, property-related business, supporting units of Hong Kong operations, investment properties, bank premises, and the net results of associates and other subsidiaries. The company was founded in 1918 and is headquartered in Hong Kong.

Financial Highlights

Dec 2017 HKDUSD
Revenue27,846M3,573.29M
Gross Profit----
Operating income7,189M922.51M
Income before tax7,565M970.76M
Net income5,698M731.18M
EBITDA----
Diluted EPS1.710.21
Dividends Per Share1.280.16
Total Assets808,942M103,480.99M
Total liabilities716,622M91,671.29M
Total equity89,482M11,446.66M
Operating cash flow6,843M878.11M
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 31,312M 34,411M 28,737M 25,226M 27,846M
Gross Profit -- -- -- -- --
Operating income 7,292M 7,447M 5,187M 3,163M 7,189M
Income before tax 7,802M 7,779M 5,829M 4,592M 7,565M
Net income 6,613M 6,661M 4,774M 3,010M 5,698M
EBITDA -- -- -- -- --
Diluted EPS 2.78 2.72 1.95 1.21 1.71
Dividends Per Share 1.11 1.11 0.88 0.56 1.28
Total Assets 753,954M 795,891M 781,364M 765,706M 808,942M
Total liabilities 685,720M 722,447M 700,739M 684,086M 716,622M
Total equity 63,682M 68,880M 77,413M 78,431M 89,482M
Operating cash flow 10,355M 6,510M 12,458M 8,909M 6,843M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 4,036.79M 4,437.44M 3,706.76M 3,249.74M 3,573.29M
Gross Profit -- -- -- -- --
Operating income 940.09M 960.32M 669.06M 407.47M 922.51M
Income before tax 1,005.84M 1,003.13M 751.87M 591.56M 970.76M
Net income 852.55M 858.96M 615.79M 387.76M 731.18M
EBITDA -- -- -- -- --
Diluted EPS 0.35 0.35 0.25 0.15 0.21
Dividends Per Share 0.14 0.14 0.11 0.07 0.16
Total Assets 97,237.34M 102,631.38M 100,819.20M 98,760.63M 103,480.99M
Total liabilities 88,437.21M 93,160.67M 90,416.17M 88,233.29M 91,671.29M
Total equity 8,213.05M 8,882.18M 9,988.58M 10,116.01M 11,446.66M
Operating cash flow 1,334.98M 839.49M 1,606.95M 1,147.70M 878.11M

Valuation Measures

Dec 2017
PER19.79
ROA0.72%
ROE6.78%
Operating margin25.81%
Profit margin20.46%

Key executives

  • Chairman & Chief Executive Officer: Kwok Po Li
  • Chief Operating Officer & Deputy CEO: Hon-Shing Tong
  • Vice President: Hei Lok Shiao
  • Chief Investment Officer & Deputy CEO: Kai-Cheong Li
  • Executive Director & Deputy CEO: Man Kiu Li

Shareholders

  • Sumitomo Mitsui Financial Group, Inc. (18.1%)
  • Fundacion Bancaria Caixa d'Estalvis i Pensions de Barcelona (16.5%)
  • Guoco Group Ltd. (13.1%)
  • Elliott Management Corp. (7.7%)
  • LI KWOK PO DAVID (3.3%)
  • LI KWOK CHEUNG (1.4%)
  • The Vanguard Group, Inc. (1.1%)
  • BlackRock Fund Advisors (0.8%)
  • LI KWOK SING (0.6%)
  • WONG CHI YUN (0.6%)

Contact Details

  • Website:http://www.hkbea.com
  • Address: 10 Des Voeux Road, Central, Hong Kong, Hong Kong
  • Phone: +852.3608.3608

Related Companies

  • Bank of East Asia Ltd. /Subsidiaries (3)/
  • Chongqing Dongrong Business Consultancy Co. Ltd.
  • Chongqing Liangjiang New Area Credit Gain Finance Co. Ltd.
  • Shenzhen Credit Gain Finance Co. Ltd.
  • Bank of East Asia Ltd. (Custody)
  • Credit Gain Finance Co. Ltd.
  • Mache Nominees Ltd.
  • Bank of East Asia Ltd. (Taipei Branch)
  • Bank of East Asia Ltd. (New York Branch)
  • BEA Pacific Asia Ltd.
  • Bank of East Asia (China) Ltd. (Shijiazhuang Branch)
  • Bank of East Asia Ltd. (Macau Branch)
  • Tung Shing Bullion (Brokers) Ltd.
  • Tung Shing (Securities) Brokers Ltd.
  • Bank of East Asia (Singapore Branch)
  • Bank of East Asia Ltd. (London Branch)
  • East Asia Secretaries (BVI) Ltd.
  • Bank of East Asia (Trustees) Ltd.
  • Bank of East Asia Ltd. (Los Angeles Branch)
  • BEA Wealth Management Services (Taiwan) Ltd.
  • Tricor KK
  • Bank of East Asia (Nominees) Ltd.
  • East Asia Property Agency Co. Ltd.
  • Tricor Aldbridge LLP
  • East Asia Holding Co., Inc.
  • East Asia Futures Ltd.
  • BEA Life Ltd.
  • Blue Cross (Asia-Pacific) Insurance Ltd.
  • Tung Shing Holdings Co. Ltd.
  • Bank of East Asia Ltd. (Broker HK)

Competitors

    Last Updated on 16 Aug, 2018

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