news flash·2025-06-26 02:18Core Viewpoint - Goldman Sachs maintains a "Buy" rating for Bank of China (03988.HK) with a target price of HKD 4.83, corresponding to a projected price-to-earnings ratio of 4.375 times for 2026 [1] Group 1: Financial Performance and Projections - Bank of China anticipates continued pressure on net interest margin in 2025, but expects the year-on-year decline to narrow [1] - The overseas net interest margin is expected to benefit from the Federal Reserve's slowing rate cuts [1] - The target for RMB loan growth in 2025 is close to last year's level, with a rebound in retail consumer loan demand [1] Group 2: Revenue and Investment Insights - The bank expects stable fee income in 2025, primarily supported by overseas business [1] - There is a slight growth in bond investments, with 70-80% allocated to government bonds [1] Group 3: Risk Management and Capital Injection - Asset quality risk is mainly concentrated in the retail sector, but overall risk is expected to be manageable with stable provisioning levels [1] - The completion of a capital injection of CNY 165 billion on June 17 is expected to leverage over CNY 1 trillion in credit growth, supporting the real economy [1]