BOCHK realises HK$30 billion profit from Nanyang sale
New owner said NCB’s platform is highly complimentary to Cinda’s business; pledges to retain staff
Bank of China (Hong Kong) is set to realise a HK$30 billion profit, after its HK$68 billion sale of subsidiary Nanyang Commercial Bank to mainland “bad bank” asset manager China Cinda Asset Management officially closed on Monday.
The BOCHK board has yet to meet and decide whether there will be a special dividend awarded to shareholders from the sale, as compared to its longstanding dividend policy of sharing between 40 - 60 per cent normal business profit with shareholders, said Ronick Chan Chun-ying, board secretary of Bank of China (Hong Kong), who spoke after the official handover ceremony.
After today’s cash injection, BOCHK believes it will see its common equity tier-one ratio (CET1), a measure of the bank’s capital sufficiency, rise by 6.7 percentage points from its latest level at about 17 per cent, making it one of the most capital robust banks in the territory.
“It should be enough for our business development for the foreseeable future,” Chan said, when asked by the The Post whether further fundraising activities might be needed.
Chan said some uses for the funds had already been earmarked.
