HSI1 26,270.04 0.00 --
HSCEI1 10,177.29 0.00 --
Back    Zoom +    Zoom - Block Traded
Citi: HK Banks Subject to Income Overhang, Top-pick BOC HONG KONG (02388.HK)
2019-07-17 14:47:44
Hong Kong's banking deposits contracted by 1% MoM in May, due to reduced time and CASA deposits. Deposit growth has been feeble YTD, up 1.6% in 5M19 only.

Citigroup foresaw headwinds for Hong Kong banks' revenue outlook, with NIM peaking in 2019 and declining afterward. This is driven by possible Fed rate cuts, weakening credit demand and intensified deposit competition.

The broker preferred BOC HONG KONG (02388.HK) the most among Hong Kong banks, rating it at Buy. HANG SENG BANK (00011.HK) and BANK OF E ASIA (00023.HK) were rated Neutral and Sell, respectively. For intentional banks, HSBC HOLDINGS (00005.HK) was rated Sell, and STANCHART (02888.HK) was downgraded to Neutral.

AAStocks Financial News
Web Site: www.aastocks.com