Bank of East Asia posts first big loss in 4 decades

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

Chairman David Li said he would "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.