Citibank: Bank of East Asia (00023.HK) reports a 5% decrease in mid-term pre-tax profit on a year-on-year basis, maintains a "buy" rating.

According to the Wisdom Financial APP, Citibank released a research report predicting that the mid-term net profit of Bank of East Asia (00023.HK) will drop by 1% to 2.2 billion yuan year-on-year, while pretax profit is expected to reach 2.9 billion yuan, a 5% decrease year-on-year, mainly due to an increase in impairment provisions and losses from property revaluation. Pre-provision operating profit (PPoP) is forecasted to reach 6 billion yuan, a 9% increase year-on-year, driven by a 12% increase in non-interest income. However, the Hong Kong Interbank Offered Rate (HIBOR) for the first half of the year is expected to decrease compared to the second half of last year, which may lead to a 3% decrease in net interest income for the half year. The research report maintains a "buy" rating for Bank of East Asia with a target price of 16 Hong Kong dollars.