The Hong Kong bank reported a decline in net profit and income in the first quarter.

Bank of China Hong Kong, which provides wealth management services as part of its offering, has reported a fall in net operating profit, before impairments, to HK$6.643 billion (around $856.5 million) for the first three months of this year, a drop of 8.1 per cent on a year ago.

The bank has restated its Q1 2015 figure, now at HK7.226 billion, it said in a statement yesterday.

Net operating income, before impairment allowances, was HK$9.49 billion, down 4.1 per cent year-on-year, it said.

Net interest income dropped due to the narrowing of net interest margin but was partially offset by the growth in average interest-earning assets, the bank said.

The decline in net interest margin was mainly due to the decrease in average interest spread, caused by the drop in onshore renminbi market interest rates and the drop in higher-yielding renminbi balances and placements with banks, as well as the increase in short-term debt securities investments, it added.