HK Banks Monthly: June 2026: Regional banks outperformed amid broad-based market weakness

Research evidence excerpt

HK Banks Monthly: June 2026: Regional banks outperformed amid broad-based market weakness

ed as the leading contender in the Link

Reportedly Leading the Bid bidding process.

KPMG: HK Banks’ FY25 Revenue A KPMG report highlighted that HK banks saw 5.1% revenue growth for 2025. Although future profitability

6/18/2026 Rose Over 5% with Improving NPL may face pressure from uncertainty in interest rates, continued weakness in CRE and rising deposit Link

Outlook Next Year competition, the impaired loan ratio is expected to decline next year.

The government has proposed raising bank license fees by 23% to HK$750k. Authorities emphasized that

HKMA Proposes 23% Hike in Bank

6/18/2026 this fee represents a minimal fraction of financial institutions' expenses and will not harm HK's international Link

License Fees

financial competitiveness.

HK Banks Sped up the Collateral According to Deloitte, HK banks are stepping up efforts to resolve NPL tied to local property developers,

6/22/2026 Divestments in Individual Delinquent even if it means realizing losses, as prolonged weakness in the CRE market has increased pressure on Link

CRE Cases collateral values and regulatory capital.

STAN is exploring the sale of its WM and retail banking operations in Bahrain as part of its strategy to focus

STAN Explores Sale of Bahrain

6/25/2026 on larger-scale business and customer segments with greater product differentiation. The bank will retain its Link

Wealth & Retail Banking Business

CIB business in Bahrain, with the transition expected to take 18-24 months, subject to regulatory approvals.

BOCHK's Chief Risk Officer said at the AGM that NPL pressure is expected to remain elevated in 2H26 amid

BOCHK Expects Continued NPL

6/25/2026 ongoing geopolitical tensions and persistent inflation.