HK's Bank of East Asia 2007 profit rises 21 pct

HONG KONG, Feb 15 (Reuters) - Bank of East Asia Ltd (0023.HK), Hong Kong's fifth-largest lender by assets, posted a 21 percent rise in 2007 earnings amid higher operating costs, meeting forecasts, and booked HK$395 million ($50.6 million) in impairment losses.

The bank held $600 million in U.S. corporate CDOs at the end of last year, according to analyst reports, and Goldman Sachs had forecast the company would mark down the value of those holdings by 15 percent for the second half of 2007 and a further 15 percent for the first half of this year.

Bank of East Asia reported a net profit of HK$4.14 billion ($530 million) in 2007, versus HK$3.43 billion in 2006.

A poll of 21 analysts by Reuters Estimates had forecast a profit of HK$4.12 billion for 2007.

Shares in Bank of East Asia are down 19 percent this year through Thursday, compared with a 13.6 percent drop in the benchmark Hang Seng Index .HSI.

(US$1=HK$7.8)

(Reporting by Kennix Chim; editing by Anne Marie Roantree)