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Citi Lifts TPs of BOC HONG KONG/ BANK OF E ASIA, Prefers HSBC HOLDINGS as Top Pick
2026-02-10 13:15:55
Hong Kong banks will begin announcing their 2H25 results in mid-February, Citi Research issued a research report saying. The broker expected that the results of Hong Kong banks will generally be in line with expectations, as potential revenue upside may be offset by higher impairment charges.

The normalization of HIBOR will support net interest income in 4Q25, but fee income growth may slow due to a high base, Citi Research noted. The bond repayment delay by CHINA VANKE (02202.HK) may pressure BOC HONG KONG (02388.HK)'s credit costs in 4Q25 and 2026.

Among Hong Kong banks, the broker preferred international banks, with HSBC HOLDINGS (00005.HK) as its top pick. Citi Research anticipated HSBC HOLDINGS to release positive messages on its 2026 targets, with earnings upsides from the improvement in non-interest income.

In its model, Citi Research forecasted that the full-year dividend payout ratios for BOC HONG KONG/ BANK OF E ASIA (00023.HK) will increase by 1 ppt.

Therefore, the broker lifted its target prices for BOC HONG KONG/ BANK OF E ASIA from $41.3/ $12.6 to $47.6/ $14.9, with ratings at Buy/ Neutral, respectively.
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AASTOCKS Financial News
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