BOC Hong Kong () : 2014 results achieved new high - Profit attributable to the equity holders reached HK$24,577 million

25 March 2015

BOC Hong Kong (Holdings) Limited ("the Company", stock code "2388"; ADR OTC Symbol: "BHKLY") today announced its 2014 annual results. The Company and its subsidiaries ("the Group") achieved record high results in revenue and profits, driven by the growth of its core businesses. We succeeded in capturing considerable business opportunities by leveraging our competitive edge in the RMB business and our close collaboration with our parent bank, Bank of China ("BOC"). In addition, we were proactive in managing our balance sheet to enhance returns and support our business development. All key financial ratios stayed sound with a solid capital and liquidity position, providing us with a strong foundation for further growth.
The Board recommended the declaration of a proposed final dividend of HK$0.575 per share for 2014. This, together with the interim dividend of HK$ 0.545 per share, results in a total dividend of HK$1.120 per share. The dividend payout ratio is 48.2% for the year. The dividend declaration is subject to the approval of shareholders at the forthcoming Annual General Meeting to be held on 16 June 2015.

• Net operating income before impairment allowances increased by 9.8% year -on-year to
HK$44,282 million, driven by growth in net interest income and net fee and commission income.
• Operating profit before impairment allowances rose by 10.9% to HK$31,310 million.
• Profit attributable to the equity holders increased by 10.4% year-on-year to HK$24,577 million;
earnings per share of HK$2.3246.
• Return on average total assets (ROA) and return on average shareholders' equity (ROE) were
1.19% and 14.65% respectively.
• Net interest income rose by 14.3% year-on-year to HK$31,919 million, thanks to the growth of
12.3% in average interest-earning assets and a widening of 4 basis points in net interest margin to
1.72%.
• Net fee and commission income grew by 12.9% to HK$10,122 million, mainly driven by commission income from loans, insurance, securities brokerage and funds distribution.
• Total operating expenses increased by 7.4% to HK$12,972 million. Cost-to-income ratio was
29.29%, down 0.68 percentage point year-on-year. This was among the lowest in the industry.

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As at 31 December 2014, total assets amounted to HK$2,189.4 billion, up 7.0% compared with the end of 2013.

Customer loans and deposits posted healthy growth of 12.0% and 11.7% respectively.

Overall loan quality remained sound, with the classified or impaired loan ratio staying at a low level of 0.31%, which was below the market average.

The capital adequacy level was further improved, with a total capital ratio of 17.51% and a Tier 1 capital ratio of 12.38%, both up 1.71 percentage points.

The liquidity position was sound with the average liquidity ratio at 42.17%, up 4.24 percentage points.

"The Group delivered another year of record results in 2014, thanks to the growth in our core businesses. During the year, we refined our asset mix while strengthening our risk management. Riding on the opportunities arising from the further development of the offshore RMB market, the Group provided an array of new products and services in a timely manner, which reinforced our position as the first mover in offshore RMB business. Looking ahead, we will capitalise on our strong financial position and market knowledge to capture the growth opportunities. We will also continue to strengthen our asset and liability management, introduce new service models and ride on the latest technology trends to increase our service efficiency and sales capabilities, as these will all help us achieve our long-term strategic goal of sustainable development."

"2014 marked another year of success for the Group in terms of our business development and growth. Looking ahead, we will be proactive in taking advantage of the business opportunities arising from the Mainland's deepening reform and a new round of opening up. We will also deepen our collaboration with BOC to extend the geographical coverage of our business, drive innovation in financial products and services, and expand our customer base in order to sustain our business development and profit growth. In a complex external environment, prudent risk management will remain our primary consideration in pursuit of our business development. We will also strengthen our credit risk management and adhere closely to our prudent credit policy to deliver quality growth. As a Domestic Systemically Important Authorised Institution in Hong Kong, we will diligently implement the Basel III guidelines and regulatory requirements, proactively manage capital and liquidity, and continually optimise our balance sheet mix. Our goal is to balance business growth with regulatory requirements and deliver stable shareholder returns. Building on the Group's strong franchise and solid foundation, we will remain committed to realising the Group's vision to become the Premier Bank for our stakeholders."
For details of the 2014 annual results, please refer to the Company's announcement:
www.bochk.com/dam/bochk/desktop/top/aboutus/ir/docs/finreport/bochkholdings/2014ar/finreport_bochkH_annual2014_en.pdf
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BOC Hong Kong (Holdings) Limited ("the Company") was incorporated in Hong Kong on 12 September 2001 to hold the entire equity interest in Bank of China (Hong Kong) Limited ("BOCHK"), its principal operating subsidiary. Bank of China Limited (HK Stock Code: "3988") holds a 66.06% equity interest in the Company through BOC Hong Kong (BVI) Limited, an indirect wholly-owned subsidiary of Bank of China Limited.

BOCHK is a leading listed commercial banking group in Hong Kong. With over 260 branches, more than

600 ATMs and other delivery channels in Hong Kong, BOCHK and its subsidiaries offer a comprehensive range of financial products and services to personal and corporate customers. BOCHK is one of the three note issuing banks in Hong Kong and also the Clearing Bank for Renminbi business in Hong Kong. In addition, the BOCHK Group (comprising BOCHK, Nanyang Commercial Bank and Chiyu Banking Corporation) and its subsidiaries have

42 branches and sub-branches in the Mainland of China to provide cross-border banking services to customers in

Hong Kong and the Mainland.

The Company began trading on the main board of the Stock Exchange of Hong Kong on 25 July 2002, with stock code "2388", ADR OTC Symbol: "BHKLY".

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