Bank of East Asia's (HKG:0023) net profit for 2011, which rose 3.2% on year to a record high of HK$4.358 billion, was near the lower-end of forecasts. The median forecast was HK$4.462 billion.

As a result of satisfactory growth in the bank's loan portfolio and trade finance business, the group's net interest income increased by 22.8% to HK$9.263 billion. Net fee and commission income rose by 13.6%. Due to an unexpected deterioration in the global economic environment arising from the Eurozone debt crisis, the group sustained losses in trading activities and investments designated at fair value through profit or loss in 2011, amounting to a total of HK$471 million. As a result, non-interest income decreased by HK$131 million, or 3.7%.

Valuation gains on investment properties decreased to HK$404 million whereas the profit on sale of fixed assets increased to HK$140 million, compared to a loss of HK$6 million for 2010.

Due to the strong performance of associates, the group shared after-tax profits from associates of HK$435 million.