Finance
The Bank of East Asia Ltd.
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
The Bank of East Asia Ltd. engages in the provision of banking and related financial services. It operates through the following segments: Personal Banking, Corporate Banking, Treasury Markets, Wealth Management, Centralised Operations, Others, Mainland China Operations, Overseas Operations, and Corporate Management. The Personal Banking segment handles branch operations, personal internet banking, consumer finance, property loans, and credit card business. The Corporate Banking segment includes corporate lending and loan syndication, asset based lending, commercial lending, securities lending, and trade financing activities. The Treasury Markets segment is involved in the treasury operations and securities dealing. The Wealth Management segment offers private banking business, and investment products and advisory. The Centralised Operations segment focuses on supporting units of banking operations. The Others segment manages the insurance business, trust business, securities and futures broking, 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 data processing and back office operations in Mainland China. The Overseas Operations segment includes back office unit for overseas banking operations in Hong Kong, Macau Branch, Taiwan Branch, and all branches, subsidiaries, and associates operating in overseas. The Corporate Management segment absorbs the regulatory capital cost of loan capital issued by the Bank and receives, from Hong Kong operations, the interest income on business activities funded by capital instruments issued by the Bank. The company was founded in 1918 and is headquartered in Hong Kong.
Financial Highlights
| Dec 2022 | HKD | USD |
| Revenue | 29,714M | 3,794.65M |
| Gross Profit | -- | -- |
| Operating income | 3,152M | 402.52M |
| Income before tax | 4,941M | 630.99M |
| Net income | 3,651M | 466.25M |
| EBITDA | -- | -- |
| Diluted EPS | 1.32 | 0.16 |
| Dividends Per Share | 0.33 | 0.04 |
| Total Assets | 882,825M | 113,110.91M |
| Total liabilities | 786,564M | 100,777.58M |
| Total equity | 95,987M | 12,298.22M |
| Operating cash flow | 19,027M | 2,429.86M |
| Currency in HKD | Currency in USD |
Historical Data
| Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | |
| Revenue | 30,838M | 34,698M | 27,345M | 23,856M | 29,714M |
| Gross Profit | -- | -- | -- | -- | -- |
| Operating income | 7,422M | 2,611M | 3,421M | 5,283M | 3,152M |
| Income before tax | 8,060M | 3,198M | 3,606M | 6,136M | 4,941M |
| Net income | 5,796M | 2,580M | 2,822M | 4,459M | 3,651M |
| EBITDA | -- | -- | -- | -- | -- |
| Diluted EPS | 2.06 | 0.89 | 0.96 | 1.52 | 1.32 |
| Dividends Per Share | 0.83 | 0.46 | 0.40 | 0.70 | 0.33 |
| Total Assets | 839,451M | 865,198M | 884,420M | 907,470M | 882,825M |
| Total liabilities | 744,770M | 769,523M | 784,592M | 805,388M | 786,564M |
| Total equity | 91,826M | 95,307M | 98,885M | 101,778M | 95,987M |
| Operating cash flow | 19,258M | 15,347M | 14,508M | 2,318M | 19,027M |
| Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | |
| Revenue | 3,934.65M | 4,428.47M | 3,525.65M | 3,069.14M | 3,794.65M |
| Gross Profit | -- | -- | -- | -- | -- |
| Operating income | 946.98M | 333.23M | 441.07M | 679.67M | 402.52M |
| Income before tax | 1,028.38M | 408.15M | 464.93M | 789.41M | 630.99M |
| Net income | 739.51M | 329.28M | 363.84M | 573.66M | 466.25M |
| EBITDA | -- | -- | -- | -- | -- |
| Diluted EPS | 0.26 | 0.11 | 0.12 | 0.19 | 0.16 |
| Dividends Per Share | 0.10 | 0.05 | 0.05 | 0.09 | 0.04 |
| Total Assets | 107,218.48M | 111,039.55M | 114,062.05M | 116,397.52M | 113,110.91M |
| Total liabilities | 95,125.39M | 98,760.62M | 101,187.41M | 103,303.87M | 100,777.58M |
| Total equity | 11,728.43M | 12,231.70M | 12,753.01M | 13,054.65M | 12,298.22M |
| Operating cash flow | 2,457.14M | 1,958.72M | 1,870.55M | 298.21M | 2,429.86M |
Valuation Measures
| Dec 2022 | |
| PER | 7.14 |
| ROA | 0.40% |
| ROE | 3.69% |
| Operating margin | 10.60% |
| Profit margin | 12.28% |
Key executives
- Co-Chief Executive Officer & Executive Director: Man-Kiu Li
- Co-Chief Executive Officer & Executive Director: Man Bun Li
- Chief Operating Officer & Deputy CEO: Hon-Shing Tong
- Chief Financial Officer: Dawn Tao
- Vice President: Hei Lok Shiao
Shareholders
- Sumitomo Mitsui Financial Group, Inc. (21.4%)
- Fundacion Bancaria Caixa d'Estalvis i Pensions de Barcelona (18.9%)
- Guoco Management Co. Ltd. (16.2%)
- LI KWOK PO DAVID (4.3%)
- LI KWOK CHEUNG (1.5%)
- WONG CHI YUN (0.9%)
- The Vanguard Group, Inc. (0.9%)
- LI KWOK SING (0.7%)
- Dimensional Fund Advisors LP (0.5%)
- BlackRock Fund Advisors (0.5%)
Contact Details
- Website:http://www.hkbea.com
- Phone: +852.3608.3608
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