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2026-11-02 16:25:03 BofA Securities published a research report stating that BOC HONG KONG (02388.HK)'s core earnings for the first nine months rose 1% YoY to HKD45 billion, while operating profit increased 3.7% YoY. Both accounted for 76% of the broker's full-year forecasts, with results in line with expectations and progressing toward full-year earnings targets as planned. The growth rates showed slight improvement from 1H results, when core earnings fell 2.5% YoY and operating profit rose 0.2% YoY. On a QoQ basis, adjusted NIM declined by 3 bps and core earnings fell 8% QoQ, mainly dragged down by weaker non-interest income. The bank will distribute a third-quarter interim dividend of HKD0.29 per share on Nov 26, with the ex-dividend date on Nov 20. The broker noted that BOC HONG KONG's adjusted NIM, after foreign exchange swap cost adjustments, fell 3 bps QoQ to 1.52% in 3Q. Loans rose 1.5% QoQ and 7.5% year-to-date, while deposit growth remained strong, increasing 4.4% QoQ and 7.6% year-to-date. CASA deposit ratio rose 0.5 ppts QoQ and 1 ppt year-to-date to 54.3%. The loan-to-deposit ratio fell 1.6 ppts QoQ to 58.3%. Fee income for the first nine months declined 7.6% YoY, weaker than the 5.8% decline in 1H, due to slower insurance, brokerage and custody fee income. Other non-interest income increased 6.4% YoY. Revenue rose 2.3% YoY, while operating expenses increased 6.7% YoY, with the cost-to-income ratio rising 1 ppt YoY to 23.2%. The non-performing loan ratio rose 4 bps QoQ but fell 3 bps YoY to 0.93%. BofA Securities maintained its earnings forecasts and TP at HKD51.36, while reiterating a "Neutral" rating on BOC HONG KONG. The broker said the forecast dividend yield of 5% to 6% for 2026 to 2027 remains attractive. 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. | |