Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>UBS Adds BOC HONG KONG (02388.HK) TP to $21.8, Expects Decent 1Q24 Operating Profit
Recommend 11 Positive 23 Negative 12 |
||||
|
||||
|
UBS commented in a report that BOC HONG KONG (02388.HK) is expected to achieve good growth in pre-provision operating profit and operating profit, while net interest margins are predicted to continue to narrow in its 1Q24 results due at the end of April. The broker forecasted adjusted net interest income to grow favourably YoY from a low base. The report suggested that even with the overall decline in total banking system lending, 1.8% lower than at the end of 2023, BOCHK is still expected to record a modest loan growth in 1Q24. In 2023, BOCHK's mortgage business grew 7.4% YoY, while credit card lending and other personal loans also contributed to the good retail loan growth of 7.2%. Retail lending may be the main growth driver this year as interest rates may remain high for a long time. In addition, the withdrawal of property spicy measures is expected to boost residential property transactions, creating additional mortgage demand from 2Q24 onwards. UBS raised its target price on BOCHK from $20 to $21.8 and maintained its Neutral rating. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
