Citigroup: Maintains "Buy" Rating on Bank of China Hong Kong, First Quarter Operating Profit Exceeds Expectations.

Citi released a research report stating that Bank of China Hong Kong's first quarter operating profit increased by 14% year-on-year to HK$14.7 billion, exceeding the bank's expectations of 13%, and also surpassing the market's full-year expectation of 32%, mainly benefiting from better-than-expected net interest income and strong non-interest income. Quarterly revenue increased by 13% year-on-year, higher than the bank's forecast of 9%, driven by a 35% increase in fee income and more than doubled growth in other non-interest income. The bank also mentioned that Bank of China Hong Kong's operating expenses for the quarter increased by 3% year-on-year, surpassing the bank's forecast by 1%. Credit costs for the quarter remained stable at 30 basis points compared to the previous year. The quarterly dividend per share of HK$0.29 met expectations. Citi maintains a target price of HK$32.2 and a "buy" rating for Bank of China Hong Kong.