Hong Kong's Bank of East Asia has recorded an impressive 75.6 percent rise in net profit for the half year to 30 June 2010, from HK$1.21 billion (around $156 million) in the year-earlier period, to HK$2.12 billion.

The result was driven by strong operating income, which grew 9.3 per cent from HK$4.95 billion to HK$5.41 billion. Net interest income was up 13.5 per cent to HK$3.67 billion, while non-interest income figured 1.5 per cent above the previous year to HK$1.74 billion.

Loan quality also continued to improve, with the firm posting a sharp drop in impairment losses on loans and advances to HK$150 million, or 68.3 per cent below what was recorded in the first half of 2009. Operating profit after impairment losses was up 39 per cent from last year to HK$1.97 billion.

Despite the low interest rate environment in Hong Kong, BEA's net interest margin improved as a result of its new business. The growth in net fee and commission income was led by strong gains in fee income on loans, brokerage and credit cards. Its China subsidiary bank, Bank of East Asia (China) also posted strong gains. BEA presently operates 80 outlets in 25 major cities on the mainland. Elsewhere in the world, BEA's UK operations enjoyed double digit growth in the property sector, while in Singapore it recently launched a new regional branch.

"BEA has a strong capital base and a proven ability to manage our capital requirements efficiently. We are confident that we have both an effective strategy and the means to continue to deliver strong organic growth for our shareholders," said Dr David KP Li, the chairman and chief executive officer of the BEA Group.

Shares closed at HK$0.95 each.