Hong Kong virtual banks ‘likely to develop as big players’ even as they report losses for 2022, as loan books grow and new businesses expand
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All eight of Hong Kong’s virtual banks are still making a loss, but six of them narrowed their net losses last year following growth in loans and an expansion in new businesses.
These banks, which can only offer online banking services and started operations during the coronavirus pandemic in 2020, issued their 2022 results separately on Friday.
“[Our] efforts to diversify our revenue streams have started to bear fruit and delivered encouraging results for the year,” Ronald Iu, ZA Bank’s CEO, told the Post. The virtual lender last year expanded into new businesses that range from selling funds, insurance and currencies to international transfers and SME services.
“Robust growth in both net interest income and net fees, and commission income is getting us closer to achieving profitability,” Iu said. ZA Bank reported a net loss of HK$498.5 million last year, 10 per cent lower than a year earlier.