Broker: DBS Group Research
Date of Report: 05 June 2026
Excerpt from DBS Group Research report.
Report Summary
- Stock: Bank of China Ltd
- Ticker: 3988 HK / 601988 CH
- Action: BUY (Reiterate)
- Target Price: HKD 5.80 (12-month target), CNY 6.40 (A-shares)
- Key Idea: Bank of China’s overseas operations provide a differentiated competitive edge, with overseas Net Interest Margin (NIM) expected to stabilize and benefit from a supportive rate environment. The Group’s earnings outlook for FY26/27 has been raised by 5%-8% due to strong Q1 2026 performance and improved overseas rate outlook.
- Earnings Growth: Projected c.5.2% CAGR for FY25-28, with steady loan growth and stable NPL ratios. 1Q26 net profit rose 4.2% y/y to Rmb 56.6bn.
- Valuation: The stock trades at ~0.66x FY26F P/BV and offers a c.5.1% FY26F dividend yield, which is at the higher end among peers.
- Risks: Geopolitical tensions could materially impact Bank of China’s overseas operations and trade-related business.
above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS website : https://www.dbs.com.hk/
