Hong Kong banks still well capitalised despite poor profit outlook

Total capital ratio came in at 19.4% in September 2016.

Hong Kong banks are strongly capitalised, with the total capital ratio and Tier 1 capital ratio remaining on an uptrend, despite a poor profit outlook, says BMI Research.

"The two ratios came in at 19.4% and 16.6% in September 2016, respectively (up from 16.1% and 13.3% in June 2014). We therefore believe that a strong capital position will enable them to weather the storm over the coming months."