The Bank of East Asia Limited, often abbreviated to BEA, is a Hong Kong public banking and financial services company headquartered in Central, Hong Kong. It is currently the largest independent local Hong Kong bank, and one of two remaining family-run Hong Kong banks, with the other being Dah Sing Bank. It continues to be run by the 3rd and 4th generations of the Li family.

It was incorporated as a publicly listed bank in Hong Kong on 14 November 1918, and officially opened for business on 4 January 1919, by a group of local Hong Kong Chinese businessmen who "not only understood modern banking, but the needs of modern Chinese business." Essentially, it aimed to serve local Hong Kong citizens and businesses who were currently underserved by the large British banks and small, unorganized, and often unincorporated local Hong Kong moneylenders. By the 1930s, BEA was considered the most influential local Hong Kong bank in the city.

History

Origins, and until 2008 BEA was co-founded in Hong Kong on 14 November 1918 and officially opened for business on 4 January 1919. The idea of a local Hong Kong bank to blend East and West, essentially by embracing the style of a Chinese, family-run bank but also adopting modern accounting and banking methods, came from Kan Tong-po (). Kan had the necessary banking background but needed the financial support of the Li brothers (Li Koon-chun and Li Tse-fong) and the sociopolitical support of Sir Shouson Chow, who would become co-founders, along with several other prominent local Hong Kong Chinese businessmen, including Fung Ping Shan ().

While Kan later sold his stake in the bank in the run-up to Hong Kong's handover, the Li family's influence in the bank continues to run deep today, with Sir David Li (3rd generation) being chairman, and his sons Adrian Li and Brian Li (4th generation) being co-CEOs.

BEA expanded rapidly internationally after opening. In 1920, just one year after the bank's official opening, BEA opened its first branches outside of Hong Kong, in Shanghai and Ho Chi Minh City. In 1952, BEA opened its Singapore branch, located in Raffles Place at 60 Robinson Road. BEA would later enter the North American market in 1991 (though operations would later be sold to Industrial and Commercial Bank of China in January 2010), and mainland China in 1992.

The late 1930s to 1940s were tough on the bank, as the Second Sino-Japanese War and later Japanese occupation of Hong Kong resulted in heavy losses, with many of BEA's assets seized. Even after the war, the Chinese Civil War and later the United Nations embargo on China negatively affected Hong Kong's economy, and as a result, BEA.

In 1965, Hong Kong experienced a city-wide banking crisis which saw other local Hong Kong banks suffer bank runs and hostile takeovers, such as Hang Seng Bank. BEA, however, was undisturbed but became much more conservative thereafter.

In 1984, after the Sino-British Joint Declaration, BEA refused to follow the lead of many leading firms at the time to move their headquarters overseas, and instead decided to double down and reaffirm their "Hong Kong roots".

Traditionally more focused on internal growth rather than external acquisitions, in 1995, BEA made its first acquisition when it acquired United Chinese Bank (), with the merger being completed in 2001. BEA also acquired First Pacific Bank in 2000, and that merger was completed in 2002.

2008 to 2018 On 24 September 2008, BEA experienced a serious test in the form of the worst bank run in its history. BEA had to issue a statement to counter "malicious rumours" about its stability, as queues of customers seeking to withdraw funds formed outside some of its Hong Kong branches. It condemned the rumour mongers, declaring that it had sufficient funds to meet customers' requests, and noting that its capital adequacy ratio was above the industry average, at 14.6 percent. A statement by Joseph Yam, the then chief executive of the Hong Kong Monetary Authority, dismissed the rumour and strongly supported the bank, adding that funds would be made available to the bank if required but that no request had been made. Earlier in the week, the bank had been forced to restate its previous half-year's earnings downwards by nearly 12 percent after it was revealed that one of its staff had conducted unauthorised trades and then buried the losses.Savers mob Bank of East Asia over stability rumours – Yahoo

In October 2015, BEA entered into agreement with Sinopac Securities to sell BEA Wealth Management Services (Taiwan) Limited and Tung Shing Holdings Company Limited. BEA chairman and CEO David Li said that the disposals would allow BEA to rationalise its securities business in Greater China region. There was no disclosure of the transaction amount involved in this sales.BEA Disposes Brokerage Subsidiaries to SinoPac, BEA Press Release 2015-10-23 Retrieved 2018-04-30SinoPac Securities (Cayman) Acquires Tung Shing Holdings, ACN News Wire, Asia Corporate News Network 2015-10-26

As the banking sector and BEA continued to face challenges, BEA launched a 3-year cost-cutting plan in the beginning of 2016 to save HKD 700 million by 2018, by reducing dividend payouts, controlling costs, and trimming assets. The saving target was about 8% of its cost base in 2015. It was expected that 40% of savings coming from business alignment, 25% from restructuring middle to back offices, and remaining via branch automation and streamlining. By June 2016, BEA already slashed 180 jobsFurther gloom: More Hong Kong layoffs forecast in wake of Bank of East Asia sackings, SCMP 2016-06-03 Retrieved 2018-04-30 and closed down 22 securities brokerages outlets.Bank of East Asia to shut all 22 brokerage outlets in Hong Kong to cut costs, The Straits Times 2016-06-02 Retrieved 2018-04-30Bank of East Asia targets HK$700m cost-savings amid profits slump, Nikken Asian Review 2016-08-19 Retrieved 2018-04-30 Other key assets sold during this period of cost cutting included its holdings in Tricor, a professional services firm to private equity firm Permira for HKD 6.47 billion (profit of HKD 3.1 billion),BEA sells Tricor to PE firm Permira for HK$6.47 billion, SCMP 2016-10-05 Retrieved 2018-04-30Permira to buy Bank of East Asia's Tricor unit for US$838 million, Reuters 2016-10-05 Retrieved 2018-04-30 and various consumer finance assets to China moneylender QL Finance for HKD 1.08 billion.Bank of East Asia sells consumer finance assets to Chinese lender QL Finance for HK$1 billion, SCMP 2017-11-30 Retrieved 2018-05-01

On 29 June 2018, after 34 years of being a constituent of the Hang Seng Index, BEA was cut during the quarterly review of Hang Seng Index composition, effective 10 September 2018. The index said that the Bank of East Asia did not meet the turnover and market capitalisation minimums.Bank of East Asia and China Merchants Port kicked out of benchmark Hang Seng Index, SCMP 2018-08-10. Retrieved 2018-08-12

In late 2018, BEA began to venture into investment banking by setting up a debt capital markets team based in Hong Kong.

Since 2019 BEA began 2019 by celebrating its centennial on 2 January 2019, with a reception at the Hong Kong Convention and Exhibition Centre attended by various business and political leaders from Hong Kong.

On 1 July 2019, David Li stepped down as CEO after 38 years (but still retaining his Chairmanship), and was replaced by his sons Adrian and Brian Li as co-CEO's.

BEA faced a difficult 2019, with loan writedowns in China and unprecedented scale of protests in Hong Kong affecting business.

In January 2025, The bank teamed up with Guangzhou Rural Commercial Bank (GRCB) to broaden its cross-boundary wealth management (WMC) Southbound business, marking its first WMC partnership outside the BEA group.

Business segmentation BEA trades through the following segments:BEA Company Profile Retrieved 2018-05-01

Corporate banking Personal banking Wealth management Insurance and retirement benefits Treasury markets China International divisions

Headquarters From 1918 to 1920, the bank was headquartered in 2 Des Voeux Road Central, in Central, Hong Kong. In 1920, the bank moved its headquarters to the 29-storey Bank of East Asia Building (東亞銀行大廈) located at 10 Des Voeux Road Central, standing between New Henry House and The Landmark.

The Bank of East Asia Building has had multiple rebuilds over the years:

First generation (1920 to 1933)Bank of East Asia Building (1st Generation) at gwulo.com Second generation (1935 to 1980)Bank of East Asia Building (2nd Generation) at gwulo.com Third generation (1982 to present)Bank of East Asia Building, property listing by Landvision Property Agency

Mainland China operations Bank of East Asia began its mainland China business in 1992, and in 2007, was among the 4 foreign banks approved by China Banking Regulatory Commission (CBRC) to establish a locally incorporated bank, the Bank of East Asia (China) Ltd (BEA China).China Embassy in UK news 2007-03-21 Retrieved 2018-04-30

On 20 May 2008, BEA became a foreign bank that issued yuan-denominated debit cards in mainland China, taking advantage of the recent removal of a key restriction on foreign banks' retail business in the country. The bank issued the debit cards jointly with China UnionPay, the country's only bankcard network operator. The company claimed that the launch of debit cards would help attract retail banking customers by giving them greater convenience in accessing their deposits. In addition, it offers direct Alipay payment support and issues credit cards (RMB-denominated UnionPay credit cards in 2008, and more recently Visa-branded US dollar-denominated cards in April 2011).

BEA currently operate one of the most extensive networks in mainland China for a foreign bank.

Overseas operations

BEA operates overseas in several locations serving expatriate Hong Kong residents.

BEA operates overseas branches in the following countries and markets:BEA Interneation Network Retrieved 2018-04-30

Macau Malaysia Singapore Taiwan United States United Kingdom

Former overseas branches:

Canada (1991–2010): Retains 20% stake; sold 70% to Industrial and Commercial Bank of China in 2010 and all branches were renamed ICBC Canada in July 2010; a further 10% was sold to ICBC in 2011.

Major shareholders Major shareholders in BEA as of the 2023 annual report: +ShareholderPercentageSumitomo Mitsui Banking Corporation21.68%Criteria Caixa Holding19.19%Guoco Group16.44%The Li family~10.00%

Leadership

Current Leadership

Executive Chairman: David Li (since April 1997) Co-Chief Executives: Adrian Li and Brian Li (since July 2019)

List of former chairmen Pong Wai-ting (1919–1925); co-founder Shouson Chow (1925–1959); co-founder Kan Tong-po (1959–1963); co-founder Kan Yuet-keung (1964–1984); son of co-founder Kan Tong-po Li Fook-wo (1984–1997); son of co-founder Li Tse-fong

List of former chief executive officers The position of Chief Executive Officer was known as Chief Manager prior to 1986. Kan Tong-po (1919–1963); co-founder Kenneth Fung (1963–1970); co-founder Kan Yuet-hing (1970–1972); son of Kan Tong-po Li Fook-wo (1972–1977); son of co-founder Li Tse-fong Michael Kan (1977–1981); son of co-founder Kan Tong-po David Li (1981–2019); grandson of co-founder Li Koon-chun

Disputes and incidents

Elliott Management