Bulletin: Bank of East Asia's Lower Property Exposure To Mitigate Asset Quality Pressure - S&P Global Ratings’ Credit Research

Bulletin: Bank of East Asia's Lower Property Exposure To Mitigate Asset Quality Pressure

Bulletin: Bank of East Asia's Lower Property Exposure To Mitigate Asset Quality Pressure - S&P Global Ratings’ Credit Research
Bulletin: Bank of East Asia's Lower Property Exposure To Mitigate Asset Quality Pressure
Published Feb 21, 2025
3 pages (1376 words) — Published Feb 21, 2025
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Abstract:

HONG KONG (S&P Global Ratings) Feb. 21, 2025--The asset quality risk of Bank of East Asia Ltd. (BEA) could start to ease following the bank's reducing property exposure and tightening underwriting standards. We believe asset quality remains the primary risk for BEA (A-/Stable/A-2). This is amid weaknesses in the office and retail property markets, as well as an uncertain outlook for Hong Kong's home prices. We anticipate the bank will continue to gradually lower its property exposure. The exposure to property development and investment fell by 24% in 2024, to 22.6% of the loan portfolio. Additionally, approximately 84% of BEA's Hong Kong commercial real estate loans are collateralized, with an average loan-to-value ratio of about 53%. As of the end

  
Brief Excerpt:

...(Editor's Note: This media release, published earlier today, has been republished to clarify the bank's exposure to property development and investment in the third paragraph. A corrected version follows.)...

  
Report Type:

Bulletin

Ticker
23@HK
Issuer
Bank of East Asia Ltd. (The)
GICS
Diversified Banks (40101010)
Sector
Global Issuers, Structured Finance
Country
Hong Kong
Region
Emerging Markets
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Bank of East Asia's Lower Property Exposure To Mitigate Asset Quality Pressure" Feb 21, 2025. Alacra Store. May 17, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Bank-of-East-Asia-s-Lower-Property-Exposure-To-Mitigate-Asset-Quality-Pressure-3326789>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Bank of East Asia's Lower Property Exposure To Mitigate Asset Quality Pressure Feb 21, 2025. New York, NY: Alacra Store. Retrieved May 17, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Bank-of-East-Asia-s-Lower-Property-Exposure-To-Mitigate-Asset-Quality-Pressure-3326789>
  
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