Zhi Tong Cai Jing·2025-09-01 10:16Core Viewpoint - Goldman Sachs reports that Bank of China Hong Kong (02388) achieved a 12% year-on-year increase in operating profit for Q2, reaching HKD 13.7 billion, exceeding market and Goldman Sachs expectations by 22% and 24% respectively, driven by improved net interest margin, partially offset by weaker-than-expected credit provisions [1] Financial Performance - For the first half of the year, Bank of China Hong Kong's earnings per share surpassed market and Goldman Sachs forecasts by 6% [1] - The interim dividend declared is HKD 0.58 per share, aligning with Goldman Sachs expectations but 13% lower than general market predictions [1] Ratings and Price Target - Goldman Sachs maintains a neutral rating on the stock, raising the target price from HKD 35.1 to HKD 38.3 [1] Earnings Forecast Adjustments - Following the Q2 performance exceeding expectations, Goldman Sachs has revised its earnings per share forecasts for Bank of China Hong Kong for 2025 to 2027 upwards by 10%, 9%, and 11% respectively, reflecting adjustments in net interest margin and non-interest income forecasts, partially offset by higher provisioning expenses [1] - The expected payout ratio for the group is projected to increase from 55% in 2024 to 56% in 2025, with a gradual rise to 58% in 2026 and 60% in 2027 [1]