Financial institution of China (Hong Kong) (BOCHK) displayed exceptional efficiency in custody companies in 2024 in its native market.
Over the 12-month interval, it elevated its property below custody (AUC) by 40% year-on-year to over HK$2 trillion (US$255 billion), guaranteeing BOCHK holds the main place amongst all domestically operated custody banks in Hong Kong.
Some of the important contributors to this success has been its collaboration with BOCI-Prudential Trustee Restricted (BOCPT) – a three way partnership established by BOC Group Trustee Firm and Prudential Company to leverage on one another’s strengths. This partnership resulted within the spectacular progress in AUC final yr, of which 60% got here by means of the BOCPT relationship.
Additional, BOCHK served extra custody prospects in 2024, a rise of 8% year-on-year, and noticed its core revenue from custodian companies rise by 29% year-on-year.
BOCHK additionally loved document progress in Belongings Below Administration (AUA) inside its company belief and company (CTA) companies, its issuer companies phase, by 22%. This surge was attributed to new offers, together with high-profile IPOs, and likewise being custodian to digital inexperienced bonds and sovereign debt programmes.
Usually, progress in BOCHK’s custody enterprise displays the rising demand for the financial institution’s modern options on this area.
For instance, in 2024 BOCHK acted because the bond trustee and agent for the Airport Authority’s first retail bond issuance, plus the financial institution was appointed because the custodian of the digital inexperienced bond issued by the HKSAR Authorities for the second consecutive yr.
Different important transactions final yr included: being engaged by one of many largest pension schemes in Hong Kong as its first Chinese language custodian financial institution for portfolios in China and Hong Kong; partnering with a number one Chinese language insurer to implement a dual-accounting resolution with a excessive diploma of automation in accounting property classification; and dealing with a sovereign wealth fund to deal with large-scale transactions plus quite a few customised knowledge feeds throughout diversified property.
As well as, the financial institution showcased its cross-border experience by strengthening its collaboration with Financial institution of China associates in China and Hong Kong, particularly for its end-to-end options for inbound and outbound investments. It grew its buyer base for Southbound, Northbound and QDI enterprise year-on-year by 76%, 9% and 11%, respectively.
BOCHK additionally is aware of that it helps having a big and skilled group to deal with the evolving wants of shoppers; the financial institution has over 400 Hong Kong-based employees specializing in its custody enterprise.
This dedication of sources additionally extends to efforts by BOCHK to drive innovation and f lexibility in its custody enterprise. With newly-built methods, the financial institution now incorporates options and operational workflows that meet market wants by way of software design, versatile database for customisable knowledge output and a complete software programming interface library.
The construction of the custody enterprise has additionally created a extremely aggressive cost-to-income ratio for BOCHK. Within the first half of 2024, as an illustration, working bills elevated by simply over 3% year-on-year, whereas web working revenue earlier than impairment allowances elevated by almost 15% in contrast with the identical interval the earlier yr.
“We’re honored to obtain this award. It reaffirms our dedication to constructing a world-class, Hong Kong-based custody platform. The achievement strengthens our place of delivering distinctive custody companies and reinforces Hong Kong’s function as a premier monetary hub.”
Andrew Regulation, Common Supervisor, Custody and Belief Providers
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