Citigroup released a research report sayingJackpotlottoresulttodayTo give Bank of China Hong Kong (02388) a "buy" ratingJackpotlottoresulttodayThe earnings per share forecast for fiscal year 2024 was roughly maintained, but the forecast for fiscal year 2025 was raised by 2% to reflect the rise in the forward exchange rate and better-than-expected costs in the fourth quarter of fiscal 2023, which was partially offset by a rise in credit costs, with a target price of 25%Jackpotlottoresulttoday.1 Hong Kong dollars fell to 25 Hong Kong dollars.

The bank expects BOC Hong Kong's first-quarter operating profit to be 11.6 billion yuan, up 33 per cent quarter-on-quarter and 5 per cent year-on-year. Due to the quarterly decline of 55 basis points in one month's HIBOR, the net interest margin is expected to decline on a quarterly basis, and the pressure is manageable. Looking ahead, as the large Bank of Hong Kong continues to reduce time deposit rates, deposit costs should continue to improve. As most time deposits have maturities of three to six months, bank funding costs are expected to improve in the second quarter.

In addition, Citi forecasts that credit costs will improve on a quarterly basis, but remain at a high level of 25 basis points, compared with 27 basis points in fiscal year 2024, and that Bank of China Hong Kong's pre-provision profit (PPoP) for 2024-2026 is expected to be 2-6 per cent. The bank believes that as its domestic counterparts improve the return on capital, BOC Hong Kong needs a more aggressive plan to push for a further revaluation.