[ET Net News Agency, 5 March 2021] Citi Research lifted its target price for Bank of
East Asia (00023) to HK$16.1 from HK$15 and maintained its "sell" rating.
The research house said BEA reported FY2020 RoE of 2.9%, reflecting the ongoing
challenges with mainland China business. Falling interest rate hurt HK NIM -41bps to 1.07%
in 2H 2020. It is likely to take BEA multiple years to improve RoE to mid-single-digit,
with improving asset quality a key catalyst.
Citi said BEA China could finally turn profitable in FY2021, as loan losses decline.
However, RoE recovery in China would require topline growth. BEA is seeking partnership in
the mainland to accelerate the growth. Wealth and credit cards would be a key focus.
Balance sheet growth could return to single-digit in China. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00023 BANK OF E ASIA
Nominal 
9.110 -0.010 (-0.110%) Research Report
05/03/2021 17:49
{I-bank focus}Citi ups Bank of East Asia (00023) to HK$16.1
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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