...August 23, 2024 HONG KONG (S&P Global Ratings) Aug. 23, 2024--The Bank of East Asia Ltd. (BEA; A-/Stable/A-2) will continue to tighten risk control and reduce exposure to commercial real estate (CRE) amid weak property markets in mainland China and Hong Kong. The Hong Kong-based bank's 2024 interim results were broadly within our expectations. We expect BEA's exposure to CRE loans to steadily reduce over the next two years. As part of tighter risk controls, the bank is focusing on high-quality borrowers with strong collateral and diversified business streams. At the same time, the bank can request additional collateral or write down loans to highly leveraged borrowers. BEA's loans to property development and investments declined by 13% in the first half, and accounted for about 26% of total loans as of June 30, 2024. Impaired loans accounted for about 2.6% of the bank's gross loans as of June 30, 2024, slightly lower than 2.7% at end-2023. While Hong Kong's CRE sector is under rising stress...
