[ET Net News Agency, 31 March 2021] HSBC Global Research lifted its target price for
Bank of China (BOC) (03988) to HK$3.9 from HK$3.6 and maintained its "buy" rating.
The research house sees BOC's 4Q 2020 as a moderate positive. As for positives, NIM and
loans loss reserve as a percentage of loans declined less than peers, capital ratios
improved, and DPS was higher than last year.
As for negatives, PPOP growth was slower than peers; asset growth decelerated on the
back of RMB strengthening, and deposits contracted in 2H. HSBC revised its 2021/22
earnings forecasts by 7.2%/6.1%. (KL)