Hong Kong's Fubon Bank posted a 77 per cent drop in full-year 2009 net profits to HK$23 million ($2.96 million), from HK$100 million ($12.89 million) in the previous year.

The bank attributed the decline to continued stress from the global financial crisis and the recession, which led its gross interest income down 31 per cent to HK$1,559 million ($200.88 million) and net interest income 16 per cent lower at HK$1,143 million ($147.3 million). The drop was mainly attributed to the widening of the Hong Kong dollar Prime-HIBOR interbank-rate spread and increase in average interest-earnings assets, it said.

Other operating income (including net fees and commission income also decreased 40 per cent to HK$278 million (around $35.8 million), owing to a reduction in commission income and impaired customer confidence in structured products. Coupled with the decline in unit trust sales and wealth management fee income, net fees and commission income dropped by HK$193 million to HK$158 million ($20.36 million).

The bank said that it will adopt a cautious growth strategy in 2010. Aside from broadening its client base, it will also expand operations through Fubon Financial's various business platforms to provide more services to Hong Kong and Taiwan companies.

"Management believes that the strong foundations the bank has systematically built over the past years will gear the bank towards steady performance of its businesses in a sustainable manner," it said.

A final dividend of 1.5 Hong Kong cents ($0.19 cents) per ordinary share was proposed, subject to shareholder approval at its annual general meeting on 30 April.