Analysts: Hong Kong virtual banks' comprehensive losses are expected to shrink to HK$2 billion or less in 2024

According to 21st Century Business Herald, senior analyst Chen Yongfu from Bloomberg Industry Research Bank and Financial Technology Industry stated that due to rapid income growth and stable cost base, the comprehensive loss of Hong Kong virtual banks is expected to shrink to HKD 2 billion or less by 2024; operating expenses may fall below HKD 3.2 billion.Last year, eight virtual banks generally recorded an increase in net interest income, with MOX BANK, Fusion Bank, Livi Bank, and Ant Bank (Hong Kong) recording growth of over 100%, but PAO Bank and Tianxing Bank's net interest income decreased compared to the previous year, with a year-on-year decline of 14% and 32%, respectively.In addition, Ant Bank had the smallest loss, with an estimated post-tax net loss of approximately HKD 180 million in 2023. Its net interest income in 2023 was HKD 58.419 million, a year-on-year increase of 291%. In the same year, customer deposits were HKD 633.822 million, a year-on-year increase of 79%; customer loans were HKD 314.375 million, a year-on-year increase of 573%.From the financial report, PAO Bank's total technology-related expenses in 2023 were approximately HKD 60.61 million, and Tianxing Bank's technology-related expenses were approximately HKD 72.67 million, accounting for approximately 24% and 30% of the two banks' total expenses in 2023, respectively.