Bank of America Securities: Raises Bank of China's target price to HKD 4.51, reiterates "Neutral" rating
Bank of America Securities released a research report stating that it has raised the profit forecast for Bank of China for 2025 to 2027 by 0.9% to 1.6%. The target price for H shares has been adjusted from HKD 4.42 to approximately HKD 4.51, an increase of about 2%; the target price for A shares has been raised from RMB 5.32 to RMB 5.46. Based on the lack of attractiveness in its dividend yield and the potential pressure on net interest margin from possible Federal Reserve rate cuts, it reiterated a "Neutral" rating. Bank of America Securities noted that Bank of China's performance last quarter was generally in line with expectations, with a net profit of RMB 177.7 billion for the first nine months of this year, a year-on-year increase of 1.1%, showing improvement compared to a year-on-year decline of 0.9% in the first half of the year. Due to the impact of equity dilution, earnings per share still recorded a slight year-on-year decline. Core earnings decreased by 0.3% year-on-year (compared to a growth of 0.1% in the first half of 2025), which is equivalent to 79% of the bank's full-year forecast for 2025. The annualized average return on equity for the first three quarters of 2025 decreased by 0.7 percentage points to 8.8%, while the core Tier 1 capital adequacy ratio remained at 12.58% as of the end of the third quarter
According to the Zhitong Finance APP, Bank of America Securities has released a research report stating that it has raised the profit forecast for Bank of China (03988) for 2025 to 2027 by 0.9% to 1.6%. The target price for H-shares has been increased by approximately 2% from HKD 4.42 to HKD 4.51; the target price for A-shares of Bank of China (601988.SH) has been raised from RMB 5.32 to RMB 5.46. Based on the lack of attractiveness in its dividend yield and the potential pressure on net interest margin from possible Federal Reserve interest rate cuts, it reiterated a "neutral" rating.
Bank of America Securities stated that Bank of China's performance last quarter was generally in line with expectations, with a net profit of RMB 177.7 billion for the first nine months of this year, a year-on-year increase of 1.1%, showing improvement compared to a 0.9% year-on-year decline in the first half of the year. Due to the impact of equity dilution, earnings per share still recorded a slight year-on-year decline. Core earnings decreased by 0.3% year-on-year (compared to a 0.1% increase in the first half of 2025), which is equivalent to 79% of the bank's full-year forecast for 2025. The annualized average return on equity for the first three quarters of 2025 decreased by 0.7 percentage points to 8.8%, while the core Tier 1 capital adequacy ratio remained at 12.58% as of the end of the third quarter
