The bank said net interest income was affected by lower net interest margins.

Additionally, the company sold $750 million worth of credit-card loans, which contain a wide interest margin.

Net interest margin for the year was around 2.7 per cent.

The bank holding company attributed the drop to lower net interest margins.

The net interest margin has improved from 2.82 to 2.87%.

The unit announced that the higher profit was due to lower credit losses and improved interest margins.

It is the interest margin that has benefited from low interest rates and liquidity injections.

But like many other banks, its interest margin contracted slightly between the second and first quarters.

Credit losses should continue to decline, and loan demand should be improving, along with net interest margins.

"Now they will have a higher interest margin to cover the loan losses," he said.