Reply #16: Bank of East Asia Posts First Loss in Four Decades (Update2)

[ozymandius]

Feb. 17 (Bloomberg) -- Bank of East Asia Ltd., the Hong Kong lender that suffered a run on deposits in September, had its first loss in at least four decades after writing down the value of credit-market investments.

The HK$855 million ($110 million) deficit for the six months ended Dec. 31, derived by subtracting first-half earnings from full-year numbers reported by the company today, compares with profit of HK$2.26 billion a year earlier.

Chairman David Li said he’ll “fast track” measures to cut costs after expenses rose 23 percent last year and bad-loan charges more than doubled. Bank of East Asia’s shares tumbled 61 percent in the past year, and the September run on the lender spurred Hong Kong’s central bank to guarantee all bank deposits.

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The lender hasn’t posted a loss since at least the 1960s, spokeswoman Vera Lung said today before results were posted, without being more specific. The bank, Hong Kong’s third-largest by market value, booked HK$3.5 billion in charges after selling its holdings of collateralized debt obligations last year.

http://www.bloomberg.com/apps/news?pid=20601087&sid=asAY6xWn4dIU&refer=home