Chong Hing Bank Shares Jump Most in a Year as Profit Gains 746%Alfred Liu
Shares of Chong Hing Bank Ltd. jumped the most in a year in Hong Kong after the company reported a wider lending margin and a 746 percent jump in first-half profit because of a property sale.
The shares rose 14 percent, the biggest gain since August last year, to HK$16.68 as of the noon local-time trading break. That pared this year’s decline to 52 percent, compared with a 4 percent gain for the benchmark Hang Seng Index.
The first-half profit of HK$2.34 billion ($302 million), reported yesterday in an exchange filing, came after a company controlled by the Guangzhou city government in southern China completed the acquisition of a majority stake in Chong Hing this year. Net interest margin, a measure of lending profitability, increased to 1.52 percent in the first half from 1.19 percent a year earlier.
“The bank’s fundamentals have recovered,” Steven Chan, a Hong Kong-based analyst at Maybank Kim Eng Holdings Ltd., said by phone. He cited improvements in net interest margin and capital ratios.