[ET Net News Agency, 24 April 2018] Goldman Sachs revised its earnings estimates for
BOC Hong Kong (BOCHK)(02388) and Hang Seng Bank (HSB)(00011) to factor in its updated
interest rate outlook.
The research house also raised BOCHK EPS forecasts by nil/+6%/+6% for FY2018/19/20, and
HSB EPS estimates by +1%/+7%/+6%.
Its revised interest rate outlook implies a steeper interest rate increase starting in
2H 2018 driving a higher NIM expansion trajectory for BOCHK/HSB.
Its estimates for Bank of East Asia (BEA)(00023)/Dah Sing Banking Group (DSBG)(02356)
remain unchanged given that it expects a muted impact from higher rates owing to a
relatively weaker funding franchise.
Goldman maintained its "buy" ratings on both BOCHK and HSB, with revised target prices
of HK$45.2 and HK$235 (from HK$43 and HK$225) respectively. (KL)