Citi: Slightly lowers Bank of China (Hong Kong) (02388.HK) target price to HK$56.5, cuts this year's earnings per share forecast by 3%

Citi released a research report stating that after BOCHK's (02388.HK) third-quarter results, it updated its model, cutting its 2026 earnings per share forecast by 3%, mainly due to a 1% reduction in net interest income to reflect higher funding costs amid deposit competition, a 2% cut in fee income due to weaker market sentiment, and an increase in credit costs to 30 basis points (previously 27 basis points); the bank slightly lowered its target price from HK$57.9 to HK$56.5, maintaining a "Buy" rating. The bank also lowered its 2027-2028 earnings per share forecasts by 1%, factoring in lower rate hike expectations and slower fee income growth.