BOC Hong Kong's 3Q Sequential Net Interest Income Growth Likely Modest

Dow Jones10-08 16:23

0823 GMT - BOC Hong Kong's net interest income growth for 3Qis likely to be modest, buoyed by solid balance-sheet growth, says Citi analyst Michael Zhang in a note. He projects the lender's 3Q adjusted net interest income to have expanded 1% on quarter to 15.1 billion Hong Kong dollars. However, BOC Hong Kong's net interest margin may have narrowed by 2 bps on quarter, due to higher funding costs amid intensifying deposit competition before rate hikes. Its net interest margin could recover after 3Q as assets reprice at higher rates, he adds. Meanwhile, fee income growth could have weakened in 3Q amid softer market sentiment in Hong Kong, he adds. Citi raises its target price to HK$57.90 from HK$56.50 and maintains a buy rating. Shares closed 4.75% lower at HK$48.48.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment