Bloomberg Analysts: Expect HK Virtual Bank's Consolidated Loss to Narrow to HK$2 Billion or Less by 2024

According to the 21st Century Business Herald, Bloomberg Industry Research's senior analyst for the banking and fintech sector, Chan Wing-fu, expects the consolidated loss of Hong Kong's virtual banks to narrow to HK$2 billion or less in 2024 due to rapid revenue growth and a stable cost base; and operating expenses are likely to fall below HK$3.2 billion.

The eight virtual banks generally recorded growth in net interest income last year, with MOX BANK, Fullerton Bank, Lee Wise Bank and Ant Bank (Hong Kong) recording growth of more than 100 percent, but PAO Bank and Star Ferry Bank recorded lower net interest income compared with the previous year, down 14 percent and 32 percent, respectively, year-on-year.

The smallest loss was also recorded by Ant Bank, with a net loss after tax of around HK$180 million in 2023. its net interest income was HK$58.419 million in 2023, an increase of 291% year-on-year. In the same year, customer deposits were HK$633,822,000, up 79% year-on-year, while customer loans were HK$314,375,000, up 573% year-on-year. From the financial reports, PAO Bank's 2023 technology-related expenses totaled about HK$60.61 million, while Star Bank's technology-related expenses amounted to about HK$72.67 million, accounting for about 24% and 30% of the two banks' total 2023 expenses, respectively.