Zhi Tong Cai Jing·2025-10-30 07:41Core Viewpoint - Bank of America Securities has raised the profit forecast for Bank of China (03988) for 2025 to 2027 by 0.9% to 1.6%, while maintaining a "neutral" rating due to concerns over dividend yield and potential pressure on net interest margin from possible Federal Reserve rate cuts [1] Financial Performance - For the first nine months of this year, Bank of China's net profit reached 177.7 billion RMB, reflecting a year-on-year growth of 1.1%, which is an improvement compared to a 0.9% decline in the first half [1] - The earnings per share experienced a slight year-on-year decline due to equity dilution, with core earnings down 0.3% compared to a 0.1% growth in the first half of 2025, aligning with the bank's full-year forecast of 79% [1] Capital Ratios - The annualized average return on equity for the first three quarters of 2025 decreased by 0.7 percentage points to 8.8% [1] - As of the end of the third quarter, the core Tier 1 capital adequacy ratio remained stable at 12.58% [1] Target Prices - The target price for Bank of China's H-shares has been adjusted from 4.42 HKD to 4.51 HKD, an increase of approximately 2% [1] - The target price for Bank of China's A-shares has been raised from 5.32 RMB to 5.46 RMB [1]