HONG KONG, Feb. 12 (Xinhua) -- Pre-tax operating profit of Hong Kong's banking sector grew 7.3 percent year on year in 2025, official data showed on Thursday.

People walk along a footpath in Hong Kong’s Central business district with the Bank of China Tower and other commercial buildings in the background, Feb 16, 2025. (File photo: China Daily)

The net interest margin of the banking sector remained at 1.52 percent, data from the Hong Kong Monetary Authority (HKMA) showed.

Total loans increased 2.3 percent year on year, snapping a three-year downward streak, among which residential mortgage loans climbed 2.5 percent, the data showed. Total deposits expanded 11.8 percent from the previous year.

In terms of asset quality, classified loan ratio -- the ratio of bad and doubtful loans -- rose 0.05 percentage points from the end of 2024 to 2.01 percent at the end of last year.

Arthur Yuen, deputy chief executive of the HKMA, said that credit risk is controllable given the sound provision coverage ratio of Hong Kong's banks. The HKMA will continue to monitor the banks' asset quality as well as corporate borrowers' liquidity to rein in risks.