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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement , make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement . 口 中銀香港 ( 控股 ) 有限公司 BOC HONG KONG ( HOLDINGS ) LIMITED ( Incorporated in Hong Kong with limited liability ) ( the " Company " , Stock Code : 2388 ) FINANCIAL AND BUSINESS REVIEW FOR THE FIRST QUARTER OF 2021 THIS ANNOUNCEMENT IS MADE BY THE COMPANY PURSUANT TO RULE 13.09 OF THE RULES GOVERNING THE LISTING OF SECURITIES ON THE STOCK EXCHANGE OF HONG KONG LIMITED The following description provides certain financial information relating to the performance of the Company and its subsidiaries ( collectively known as the “ Group ” ) in the first quarter of 2021 . In the first quarter of 2021 , downward pressures on global economy continued and financial markets volatility persisted amid the ongoing COVID - 19 pandemic . While US treasury yields rose , the US Federal Reserve maintained an accommodative monetary policy and took a more optimistic stance towards the US economic outlook . In Europe , the economy remained sluggish . The Mainland economy maintained recovery momentum , with major economic indicators registering relatively rapid growth . Countries in the Southeast Asian region once again tightened restrictive measures due to a worsening of the pandemic , thereby constraining the region's economic recovery . The pandemic situation in Hong Kong remained volatile and the unemployment rate rose . In response , the HKSAR Government introduced another round of relief measures to cope with these challenges . In terms of investment markets , stock market transaction volumes increased , IPO activity showed strong momentum and market liquidity remained ample . Financial Performance Highlights In the first quarter of 2021 , the Group's net operating income before impairment allowances rebounded by 16.3 % from the previous quarter , but decreased by 9.8 % compared with the same period of the previous year . If the funding income or cost of foreign currency swap contracts were included , net interest margin would have narrowed 5 basis points from the previous quarter to 1.11 % , amid falling market interest rates . Net interest income would have decreased by 1.8 % on a quarter - on - quarter basis and 22.0 % year - on - year . Net fee and commission income increased by 43.9 % from the previous quarter and 30.3 % from the same period last year , amid satisfactory investor sentiment in the market . Steady growth was achieved in deposits from customers and advances to customers , which increased by 2.3 % and 3.9 % respectively from the end of 2020 , excluding the impact of IPO - related activities . Loan quality remained stable . Excluding the impact of IPO - related activities , the classified or impaired loan ratio was 0.25 % . Liquidity coverage ratio , net stable funding ratio and capital ratio remained solid . 1