Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>JPMorgan Forecasts HK Banks' Earnings to Drop 21% on Average This Yr If 1-Mth HIBOR Stabilizes at 2%
Recommend 47 Positive 52 Negative 34 |
||||
|
||||
|
According to a JPMorgan report, the one-month Hong Kong Interbank Offered Rate (HIBOR) dropped by about 200 bps over the past two weeks to around 1.92%, significantly below the broker's benchmark forecast of an average of 3.75% for the entire year of 2025. If the one-month HIBOR remains at around 2% for the rest of the year, JPMorgan estimated that Hong Kong banks' earnings could fall by an average of 21% this year. Specifically, HANG SENG BANK (00011.HK)/ BOC HONG KONG (02388.HK)/ DAHSING BANKING (02356.HK)/ BANK OF E ASIA (00023.HK) could see their earnings decline by 14%/ 16%/ 21%/ 32%, while Standard Chartered/ HSBC may also log a decline of 1%/ 2% in their earnings this year. Among Hong Kong banks, the broker preferred HSBC HOLDINGS (00005.HK), but its top pick was BOC HONG KONG. In addition, according to JPMorgan's real estate analyst team, for every 1 ppt drop in HIBOR, the earnings of Hong Kong developers under its coverage could receive a roughly 5% boost. Developers with higher leverage ratios, such as HENDERSON LAND (00012.HK) and NEW WORLD DEV (00017.HK), are expected to benefit more than their peers do. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
