Daily focus ： Real-Time Quote

Bank of East Asia (23) : announced its full-year results for 2025. Affected by increased impairment provisions and narrowing net interest margin, profit attributable to shareholders of the Group fell 24.0% year-on-year to HK$3.501 billion. Basic earnings per share were HK$1.22, and a full-year dividend of HK$0.61 was declared. During the period, pre-provision operating profit fell slightly by 1.3% to HK$11.198 billion. Affected by interest rate cuts, net interest margin narrowed by 19 basis points year-on-year to 1.90%, resulting in a 7.3% decrease in net interest income to HK$15.322 billion. However, non-interest income performed strongly, surging 28.0% year-on-year to HK$5.697 billion, effectively offsetting some of the decline in interest income. Regarding asset quality, impairment losses on financial instruments rose slightly by 2.6% to HK$5.642 billion, of which 77% were related to commercial real estate (CRE) in Hong Kong and Mainland China. However, the overall impaired loan ratio has fallen to 2.69%. Looking ahead, management has set clear three-year financial targets, aiming to achieve a 14% CAGR in non-interest income, keep annual cost growth below 5%, and reduce credit costs to below 60 basis points, with the goal of increasing return on equity (ROE) to 7% by fiscal year 2028.

Trump Imposes Executive Order to Impose Further Tariffs in Response to Supreme Court Ruling

On Friday, the U.S. Supreme Court ruled 6-3 that President Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose broad-based tariffs on imported goods exceeded his executive authority and declared the tariffs invalid—a major legal setback. However, Trump immediately signed an executive order imposing a 10% global tariff on all imported goods, and then on Saturday announced on social media that he would raise the tariff rate to 15%, the highest rate allowed under the new law, effective immediately. These new tariffs are imposed under Section 122 of the Trade Act of 1974. This change essentially exacerbates the uncertainty surrounding the implementation of the new tariffs and the framework of previously signed trade agreements with trading partners, who may use this opportunity to renegotiate in hopes of reaching a more favorable agreement framework. Given the developments regarding the legal basis for the tariffs, China may adopt a tougher stance in bilateral trade negotiations with the United States.