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2026-11-12 10:56:57 UBS published a report stating that Hong Kong banks' revenue momentum in 4Q is expected to continue slowing, but overall performance should remain solid. The broker expects NIM to narrow by several bps QoQ due to the decline in HIBOR and deposit competition, even if the Federal Reserve raises interest rates once more in December. Net interest income is still expected to remain resilient, supported by asset growth driving further QoQ expansion. Fee income momentum may weaken further as capital market activities cool, with the average daily turnover so far this quarter falling 23% from 3Q levels. Trading income is also expected to remain sluggish due to limited spreads and ample liquidity. On the positive side, credit costs remain a key support for earnings growth because of the relatively high base in 4Q25 and 2H25. However, BOC HONG KONG (02388.HK) and BANK OF E ASIA (00023.HK) both slightly raised their guidance for 4Q/2H credit costs after interest rates increased again. The broker reiterated Buy ratings on BOC HONG KONG (02388.HK) and BANK OF E ASIA (00023.HK), believing that solid EPS and DPS growth prospects should support share price performance amid market volatility. (ha/da)~ 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. | |