Goldman Sachs: Bank Of China (03988) has a differentiated advantage, maintaining a "Buy" rating.

Goldman Sachs released a research report stating that it maintains a "Buy" rating on Bank of China (03988), with target prices of RMB 6.73 for A-shares and HKD 5.96 for H-shares. The bank believes that Bank of China has a differentiated advantage due to its overseas business network, relatively resilient net interest margin, and higher exposure to financial and investment income. The report mentions that Bank of China's management stated that the net interest margin continues to improve in the second quarter and expects that approximately RMB 1 trillion in time deposits will mature in the second half of this year, which will continue to bring cost benefits. Regarding asset quality, there has been an improvement in the quality of real estate-related assets in the first half of the year, with both the balance of non-performing loans and the non-performing loan ratio declining. However, retail loans remain the main pressure point, and there has not yet been a clear turning point. On the capital front, recent capital injections have strengthened its capital levels, with management reaffirming its commitment to maintaining stable dividends.