UBS: Recommends a "buy" rating for Bank of China (03988), anticipating positive market reaction to first quarter performance.

UBS released a research report stating that Bank Of China (03988) saw a 4.2% year-on-year increase in net profit in the first quarter of this year, roughly in line with the four major state-owned banks, and significantly higher than the bank's expectations. The profit resilience benefited from a stable 8.4% year-on-year growth in revenue, with net interest income increasing by 7.8%, net fee income by 5.6% year-on-year, and other non-interest income rising by 12.9%. UBS predicts that the market will react positively to the performance; it gives Bank Of China a "buy" rating, with a target price of 5.9 Hong Kong dollars.