|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||1.9500 - 2.1100|
|52 Week Range||1.8500 - 3.3300|
|Beta (5Y Monthly)||0.89|
|PE Ratio (TTM)||7.18|
|Forward Dividend & Yield||0.09 (4.51%)|
|Ex-Dividend Date||Mar 05, 2020|
|1y Target Est||2.05|
(Bloomberg) -- Bank of East Asia Ltd., the Hong Kong lender that has been besieged by activist investor Paul Singer’s Elliott Management Corp., is considering options including a sale of insurance assets as part of its strategic review, according to people familiar with the matter.BEA could seek more than $1 billion from a sale of assets including its life and general insurance as well as its pension fund business in Hong Kong, the people said, asking not to be identified because the deliberations are private. A deal for the life insurance assets could include a so-called bancassurance partnership, in which an insurer typically pays an upfront amount for exclusive rights to sell its products at bank branches, the people said.The disposals could attract interest from global insurers seeking to expand in the region amid increasing consolidation in the industry, the people said.Shares of BEA erased earlier losses and gained as much as 4.3% in Hong Kong on Tuesday. The stock ended the day 0.2% lower at HK$18.46.BEA announced last week that it had hired Goldman Sachs Group Inc. for a review of its business and assets that could lead to transactions. The process is supported by Elliott Management, which has paused court proceedings it started in 2016 against the bank and certain former and serving directors. Elliott owns about 8% of its shares.New premium income of BEA Life Ltd., the bank’s wholly-owned life insurance arm, rose by 50.8% to a record high in 2019, according to BEA’s latest earnings statement. The lender runs its general insurance business through its unit Blue Cross (Asia Pacific) Insurance Ltd., which posted double-digit growth in underwriting profit last year.The bank has over 825,000 members with HK$27.8 billion ($3.6 billion) assets in its Hong Kong pension fund schemes, known as Mandatory Provident Fund, by the end of December.Hong Kong life insurers could see their new annualized premiums drop more than 30% in the first quarter this year as the virus outbreak took a heavy toll on sales to mainland visitors, according to Bloomberg Intelligence analyst Steven Lam.“Sales to local residents also got disrupted due to reduced bank branch services, fewer face-to-face meetings and that the industry is up against high-base comparison a year earlier,” Lam said in an interview.Considerations are preliminary and BEA could still decide to keep the assets or pursue other deals, the people said. A representative for BEA declined to comment on the specific potential disposals, referring to the announcement last week.(Updates share price to close in fourth paragraph; Adds analyst comment from eighth paragraph.)\--With assistance from Alfred Liu.To contact the reporter on this story: Manuel Baigorri in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Fion Li at email@example.com, David Morris (News)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Hong Kong's banks face at least two quarters of worsening asset quality and slowing loan growth as the coronavirus outbreak hits trade and consumer banking, analysts and bankers said. Lenders in the Asian financial hub, including HSBC and Standard Chartered, are seeing a drop in demand for mortgages, credit card usage and corporate loans, bankers with knowledge of the matter said. Hong Kong banks have Asia's largest exposure to China, which accounted for 29.4% of banking system assets in the first half of last year, credit ratings agency Fitch says.
China will remove business restrictions on foreign banks, brokerages and fund management firms, a cabinet meeting chaired by Premier Li Keqiang said on Wednesday, state television reported. China has stepped up efforts to open its financial sector amid a festering trade war with the United States, with increased access to its financial sector among a host of demands from Washington.
Moody's Investors Service has assigned a Ba2(hyb) foreign currency rating to Bank of East Asia, Limited's proposed USD-denominated, undated, non-cumulative and subordinated Additional Tier 1 (AT1) capital securities. The undated AT1 capital securities will be drawn down from the bank's existing USD6 billion Medium Term Note (MTN) programme. The terms and conditions of the capital securities incorporate Basel III-compliant non-viability language in accordance with Hong Kong capital rules, and will qualify as regulatory AT1 capital.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Bank of East Asia, Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Tens of thousands of demonstrators in Hong Kong surrounded the city's legislature on Wednesday, forcing it to postpone a second round of debate on an extradition bill that would allow people to be sent to mainland China for trial. The protesters, most of them young people dressed in black, erected barricades as they prepared to hunker down for an extended occupation of the area, in scenes reminiscent of pro-democracy "Occupy" protests that rocked the city in 2014.