Bank of East Asia sees more provisions in Q1 -paper

HONG KONG, April 18 (Reuters) - Hong Kong lender Bank of East Asia (0023.HK: Quote, Profile, Research, Stock Buzz) may make further provisions for its holdings in structured investment vehicles (SIV) and collateralised debt obligations (CDO) for the first quarter of 2008, a Hong Kong newspaper reported on Friday.

The Hong Kong Economic Journal quoted the lender's finance director, Wan Yim-keung, as saying the bank might need to make further provisions amid volatile markets, but how much would depend on market conditions.

Wan declined to give further details, the newspaper said.

The lender had booked HK$1.36 billion in provisions for its structural products investment last year, including HK$1.09 billion for its CDOs and HK$270 million for SIVs, the newspaper said.

Shares in the bank have dropped 19 percent so far this year, lagging a 13 percent drop in the benchmark Hang Seng Index .HSI. (US$1=HK$7.8) (Reporting by Donny Kwok; Editing by Anne Marie Roantree)