Citigroup has issued a research report updating its model for BOC Hong Kong (02388) following the bank's first-quarter results announcement this year. The report notes that due to higher transaction revenue, Citigroup has raised its revenue forecast for BOC Hong Kong by 0% to 1% for the 2026 to 2028 fiscal years. However, due to increased business investment and a higher cost base following the integration of BOC International Private Bank, operating expense projections for the same period have been raised by 2% to 3%. Consequently, earnings per share forecasts for the 2026 to 2028 fiscal years have been adjusted downward by 0% to 1%. Citigroup reaffirmed its 'Buy' rating on BOC Hong Kong, while slightly lowering the target price from HK$50.00 to HK$49.80.
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