Welcome to the latest edition of the Hong Kong Banking Report, which includes the financial results of banks in 2024 alongside a detailed analysis of the top ten banks in the city. As in previous years, this report also looks at the most significant trends and developments affecting the sector—from tariffs and shifting global monetary policies to the growing use of artificial intelligence—and provides an outlook for how Hong Kong’s banks can navigate the challenges and opportunities ahead.
The past year’s performance offers Hong Kong’s banking sector reasons for both confidence and careful reflection. Despite ongoing global economic uncertainty, banks in the city showed resilience, growing total assets by 4.5% in 2024. While this expansion came against a backdrop of subdued loan demand and stable, slightly compressed net interest margins, it is a clear sign that Hong Kong remains a robust international financial centre, capable of adapting to challenging circumstances.
Cost discipline and operational efficiency have been at the heart of this resilience. Banks focused on boosting productivity and deploying digital transformation initiatives, which helped offset revenue pressures amid weaker loan growth. As a result, operating profit before impairment charges rose 7.8% year-on-year in 2024, underlining the sector’s ability to manage through volatility.
While there are reasons for cautious optimism, challenges persist on several fronts. The overall impaired loan ratio rose marginally in 2024, driven largely by vulnerabilities in the commercial real estate market. However, some institutions managed to keep non-performing loans under tighter control through proactive write offs, improved risk-based pricing, and digital underwriting practices that allowed for faster identification of at-risk borrowers. The muted global economic outlook and the ongoing issues in the Hong Kong and Chinese Mainland real estate sectors could continue to weigh on banks and some of their customers. Banks should therefore be vigilant in the year ahead about managing credit risk in their loan portfolios.
Beyond our financial analysis, this year’s report explores several of the major forces shaping Hong Kong’s banking sector. Agentic AI has become one of the most talked-about developments in the industry and we look at how banks are beginning to harness this technology, not only to drive innovation but also to fulfil their compliance obligations.
While agentic AI is one of the headline topics for 2025, banks increasingly recognise that its true value comes from being integrated with broader digital transformation programmes. Many are now using this moment to step back and reconsider their technology roadmaps, with the aim of ensuring that new capabilities go hand in hand with strong governance and controls.
We also cover the latest progress in digital payments, the growing use of AI to fight financial crime, and the rising importance of robust cybersecurity frameworks in defending against ever-more sophisticated threats. We hope you enjoy the insights and information in this report. Please feel free to get in touch with us if you would like to discuss the financial results or the broader outlook for the Hong Kong banking industry.
Overview
AI and digital transformation
KPMG experts share their insights
Financial Results
Compare the results of banks across a variety of metrics in the charts for each of the five categories of banks in Hong Kong
Performance Rankings | Licensed banks | Virtual banks | Restricted licence banks | Deposit taking companies | Foreign bank branches
Hong Kong Banking Report 2025
Report on the 2024 financial performance of banks in Hong Kong
About KPMG
KPMG in China has offices located in 31 cities with over 14, 000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi'an, Zhengzhou, Hong Kong SAR and Macau SAR. It started operations in Hong Kong in 1945. In 1992, KPMG became the first international accounting network to be granted a joint venture licence in the Chinese Mainland. In 2012, KPMG became the first among the “Big Four” in the Chinese Mainland to convert from a joint venture to a special general partnership.
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KPMG firms operate in 142 countries and territories with more than 275, 000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.
