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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 . 6 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 THIRD 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 third quarter of 2021 . In the third quarter of 2021 , the US economy recovered at a faster pace than other advanced economies , with the Federal Reserve beginning to discuss scaling down its asset purchase programme . In Europe , several countries continued to show signs of economic recovery following the further relaxation of pandemic containment measures . China's economic growth gradually returned to normal levels , underpinned by the 0.5 % reduction in the reserve requirement ratio announced by the People's Bank of China , which enabled more effective market liquidity adjustments . Strict containment measures remained in place in Southeast Asia given the severity of the regional COVID - 19 pandemic situation , constraining the region's economic recovery . The pandemic situation in Hong Kong was largely under control and there was a further decline in the unemployment rate . Despite increasing stock market volatility , Hong Kong's financial system continued to operate effectively and its banking system remained robust . Financial Performance Highlights In the first nine months of 2021 , the Group's net operating income before impairment allowances decreased by 12.4 % compared with the same period of the previous year , while that of the third quarter rebounded by 8.0 % from the previous quarter . If the funding income or cost of foreign currency swap contracts were included , net interest margin would have decreased by 28 basis points year - on - year and net interest income would have decreased by 11.9 % , amid falling market interest rates . In the third quarter , if the funding income or cost of foreign currency swap contracts were included , net interest margin would have remained relatively stable and net interest income would have increased by 4.7 % on a quarter - on - quarter basis . Owing to improved investor sentiment in the beginning of the year , coupled with the gradual recovery of the Hong Kong economy , net fee and commission income grew by 16.6 % from the same period last year , while that of the third quarter rebounded by 1.4 % from the previous quarter . Steady growth was achieved in deposits from customers and advances to customers , which increased by 5.6 % and 7.1 % respectively from the end of 2020 . Loan quality remained benign , with the classified or impaired loan ratio standing at 0.29 % as at the end of September . Liquidity coverage ratio , net stable funding ratio and capital ratio remained solid . 1