Ge Long Hui·2025-07-30 02:13Core Viewpoint - UBS forecasts that Bank of China Hong Kong's net profit for the first half of the year will increase by 3.4% year-on-year, primarily driven by a strong growth in non-interest income of 55.8%, which offsets a 9.1% decline in net interest income due to falling HIBOR [1] Group 1: Non-Interest Income - The strong growth in non-interest income is attributed to capital market-related fees, including securities brokerage, fund distribution, and insurance agency fees, which are expected to significantly increase with the rebound of Hong Kong stocks and declining market interest rates [1] - Trading-related investment income is also anticipated to perform well, with business revenue growth projected at 8.1% [1] Group 2: Profit Forecasts - Despite the strong performance in the first half, UBS maintains a forecast for a 1% year-on-year decline in net profit for the entire year [1] - Earnings per share forecasts for 2025 to 2027 have been raised by 3% to 9%, reflecting the robust growth in non-interest income [1] - The target price has been adjusted from HKD 34.5 to HKD 36.5, while maintaining a "Neutral" rating [1]