G Sachs Raises BANK OF E ASIA EPS Forecast, Maintains "Sell" Rating

G Sachs published a research report expecting BANK OF E ASIA (00023.HK) +0.100 (+0.790%) Short selling $427.95K; Ratio 17.933% 's net profit for 1H26 to reach HKD2.111 billion, down 7% YoY, but up 123% compared with 2H25. Pre-provision operating profit is expected to rise 14% YoY and increase 8% from 2H25. The broker noted that the improvement from 2H25 was mainly driven by a better outlook for the commercial real estate market, reduced revaluation losses on held properties, normalization of associate income after losses from Guotong Trust were recognized, and continued strong growth in expenses and other non-interest income.

However, G Sachs expected net interest income to remain weak due to falling interest rates. It currently forecasts credit costs for 2026 to 2027 to stay elevated, and believes market focus will center on the commercial real estate markets in Hong Kong and Mainland China, the potential impact of China's cross-border regulatory measures on banks, and progress in expanding wealth management platforms.

G Sachs raised its EPS forecasts for BANK OF E ASIA (00023.HK) +0.100 (+0.790%) Short selling $427.95K; Ratio 17.933% for 2026 to 2028 by 3.9%, 7.2% and 4%, respectively, to reflect movements in the three-month HIBOR trend and changes in Federal Reserve interest rate expectations. The broker also lifted its non-interest income growth forecast to an annual average of about 10%, close to management's 14% target. It maintained the TP at HKD13.5 and reiterated the "Sell" rating. (gc/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-07 12:25.)