BofAS Raises BOC HONG KONG TP to HKD50.25, Expects 1H Profit Growth of Approx. 8%
I'm LongbridgeAI, I can summarize articles.BofAS raised BOC Hong Kong's target price to HKD50.25 and increased 2026-2028 earnings forecasts by 6-9%, while maintaining a Neutral rating. The bank expects 1H profit growth of approximately 8% YoY, driven by modest net interest income increases and stable asset quality. Although fee and trading income may dip in 1H, FY2026 growth is anticipated to recover. Credit costs are expected to decline YoY despite seasonal Q2 rises, supported by a stabilizing Hong Kong property market.
BofAS issued a report raising its 2026-2028 earnings forecasts for BOC HONG KONG (02388.HK) -0.100 (-0.195%) Short selling $386.07M; Ratio 19.873% by 6-9%, while lifting its TP from HKD42.2 to HKD50.25. It reiterated a Neutral rating, believing that the bank's solid earnings outlook and capital return plans have largely been reflected in its strong share price performance and valuation so far this year.
BofAS expected BOC HONG KONG's loan growth in 2Q to remain broadly flat QoQ, while net interest income should rise modestly QoQ, supported by a favorable interest rate environment. Although fee and trading income in 1H may both edge down YoY, growth in FY2026 should recover from the lower base in 2H last year. The cost-to-income ratio is expected to remain stable after reaching 22% in 1Q, reflecting a balance between cost control and growth investments.
The report stated that BOC HONG KONG's asset quality remained stable, with no significant deterioration seen across portfolios. Although credit costs in 2Q may rise QoQ due to seasonal factors, management guided for YoY declines in credit costs for both 1H and FY2026. As Hong Kong's property market stabilizes, pressure from investment property revaluation has eased significantly, providing additional support for earnings. Overall, the broker expected 1H profit to grow by about 8% YoY. (ha/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-24 16:25.)