Report identifies fixed income and currencies, gold, transition finance and family offices as the sector's next growth frontiers — with AI governance and cyber resilience critical to long-term trust
HONG KONG, June 18, 2026 /PRNewswire/ -- Hong Kong banks delivered solid headline performance in 2025, with the total assets of all licensed banks increasing by 7.1% to HK$26 trillion and operating profit before impairment charges rising by 5.5% to HK$337 billion. While lower interest rates compressed net interest margins as rate cuts took effect, the sector continued to demonstrate balance sheet resilience. Looking forward, challenges including an uncertain interest rate environment, persistent softness in commercial real estate and intense competition for deposits may weigh on profitability. Maintaining strong asset quality and prudent risk management will remain essential to preserving earnings and balance sheet resilience. The newly launched KPMG's Hong Kong Banking Report 2026 explores the trends, opportunities and risks shaping the next phase of the sector's development.
