BOC Hong Kong Likely Has Tailwinds in Normalized Rates, Steady Loans -- Market Talk

Dow Jones01-12

0752 GMT - BOC Hong Kong's 2026 net-interest income is likely to be boosted by a normalized average Hong Kong benchmark interest rate and fewer U.S. Federal Reserve rate cuts, says DBS Group Research's Manyi Lu in a note. The Hong Kong benchmark interest rate was higher on average in 4Q compared with 3Q and is likely to remain at a normalized level in 2026, the analyst says. The lender is also likely to benefit from steady loans in the city, she says. BOC Hong Kong's noninterest income is likely to be boosted by strong fee-income growth, given an active market, Lu adds. She raises her 2026 and 2027 earnings estimates by 2% and 6%, respectively. DBS raises the stock's target price to HK$41.30 from HK$39.40 and maintains a buy rating. Shares are up 2.3% at HK$39.44.(megan.cheah@wsj.com)

 

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January 12, 2026 02:52 ET (07:52 GMT)

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