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2026-11-02 12:16:43 CICC issued a research report stating that BOC HONG KONG (02388.HK) announced its third-quarter results. Revenue for the first three quarters of this year rose 2.3% YoY, pre-tax profit increased 3.7% YoY, and profit after tax grew 9% YoY. Third-quarter revenue rose 9% YoY, while pre-tax profit increased 13% YoY, with results in line with the broker's expectations. The broker noted that adjusted net interest income in the third quarter rose 5.2% YoY and 0.9% QoQ. Asset expansion remained solid, with deposits and loans at quarter-end increasing 4.3% and 1.5% QoQ respectively, while average interest-earning assets grew about 7% YoY. However, intense deposit competition pressured NIM, with adjusted quarterly NIM narrowing 3 bps QoQ to 1.52% in the third quarter. Net fee income fell 11.8% YoY, mainly dragged by the high base from insurance and securities brokerage businesses last year, as well as weaker turnover in the Hong Kong stock market. The cost-to-income ratio remained low at 24.5% for the quarter, while credit costs improved both YoY and QoQ, with annualized quarterly credit cost at 0.36%. The company declared a quarterly dividend of HKD0.29 per share, flat YoY and in line with CICC's and market expectations. The broker maintained its revenue forecasts largely unchanged. However, considering intensified deposit competition in Hong Kong, it lowered its 2026 and 2027 net profit forecasts attributable to shareholders by 1.5% and 2.6% respectively to HKD41.2 billion and HKD42.2 billion. The broker maintained its TP at HKD60.1 and kept its "Outperform" rating unchanged, corresponding to forecast P/B ratios of 1.7x and 1.6x for 2026 and 2027 respectively, implying about 19% upside from the closing price used in the report. (da/ad)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |