---
title: "\"Big Banks\" Bank of America Securities lowers Bank of China's target price to 5 yuan, last year's net profit slightly below expectations"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/281118212.md"
description: "Bank of America Securities lowered the target price for Bank of China to HKD 5, and the target price for A-shares to RMB 5.6, reflecting profit adjustments. Last year's net profit was RMB 243 billion, an increase of 2.2%, slightly below expectations. The return on equity (ROE) decreased to 9%, with a dividend per share of RMB 0.226, and the dividend yields for H-shares and A-shares were 5.2% and 4%, respectively. The bank maintains a \"neutral\" rating, preferring ICBC and CCB"
datetime: "2026-03-31T03:42:26.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/281118212.md)
  - [en](https://longbridge.com/en/news/281118212.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/281118212.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/281118212.md) | [繁體中文](https://longbridge.com/zh-HK/news/281118212.md)


# "Big Banks" Bank of America Securities lowers Bank of China's target price to 5 yuan, last year's net profit slightly below expectations

Bank of America Securities published a research report indicating that Bank of China (03988.HK)(601988.SH) had a net profit of RMB 243 billion before deducting preferred stock dividends last year, representing a year-on-year growth of 2.2%, which is 0.7% lower than the bank's expectations. Core earnings grew by 1.6% year-on-year, exceeding forecasts by 1.9%. The return on equity (ROE) decreased by 0.6 percentage points year-on-year to 9%. The common equity tier 1 (CET1) ratio increased by 33 basis points year-on-year to 12.53%. The annual dividend per share was RMB 0.226, with dividend yields for H shares and A shares at 5.2% and 4%, respectively.

The bank adjusted its earnings forecasts for 2026 and 2027 by 1%, lowering the target price for Bank of China H shares by 4% to HKD 5, and the target price for Bank of China A shares by 8% to RMB 5.6, reflecting earnings adjustments and extending the average return on equity forecast to 2026-2028, maintaining a "Neutral" rating. The bank prefers the higher quality earnings of Industrial and Commercial Bank of China (01398.HK) and China Construction Bank (00939.HK)

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