Goldman Sachs: Maintains "buy" rating on Bank of China (03988) with a target price of HK$4.95.

Goldman Sachs released a research report stating that Bank Of China (03988) announced that its pre-provision profit and after-tax net profit for the fourth quarter of 2025 were 98 billion RMB and 68.3 billion RMB respectively, representing a year-on-year growth of 8% and 5%, which exceeded the bank's expectations. Goldman Sachs maintained a "buy" rating for Bank of China, with a target price of 4.95 Hong Kong dollars. The report pointed out that Bank of China's net interest margin improved by 2 basis points to 1.24% in the fourth quarter, with loan growth of 9% and a 2% year-on-year increase in net interest income. Goldman Sachs stated that the dividend payout ratio remained at 30%, but earnings per share were diluted due to capital replenishment, leading to a 7% year-on-year decrease in dividends per share. The report expects investors to focus on the outlook for net interest margin in 2026, bond investment strategy and investment income prospects, prospects for asset quality, potential to increase dividend payout ratio to improve shareholder returns, and the contribution of international business to the Group's net interest margin and fee income.