[ET Net News Agency, 19 February 2021] Bank of East Asia (BEA) (00023) is slated to
report 2H 2020 earnings on 24 February. Citi Research said this is the first result after
BEA announced its intent to sell BEA Life. The focus will likely be on the disposal
progress, potential distribution of proceeds, as well as any further details about the
long-term turnaround strategy by the new management team.
The research house said BEA faces NIM pressure from not only lower HIBOR but also the
de-risking exercise in China. Citi forecasted HK NIM (net interest margin) to decline
-14bps HoH to 1.28%, and China NIM to decline further by -10bps HoH to 2%.
Citi said BEA's China business has been loss-making in three out of the past four years,
and it expects BEA to report losses again for FY2020. Citi maintained its view that BEA
needs more drastic restructuring to improve the group's profitability.
Citi maintained its "sell" call on BEA, with a target price of HK$14.6. (KL)
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00023 BANK OF E ASIA
Nominal 
9.730 +0.040 (+0.413%) Research Report
19/02/2021 16:48
{I-bank focus}BEA's FY2020 earnings likely to be uninspiring
| Remark: | Real time quote last updated: 26/09/2024 11:53 |
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