Core Viewpoint - The company reported its 2025 annual performance, showing revenue growth of 8.1% year-on-year and a net profit increase of 4.9%, with Q4 2025 results aligning with expectations [1] Financial Performance - In Q4 2025, revenue increased by 13.8% year-on-year and 15.6% quarter-on-quarter, while pre-tax profit rose by 0.3% quarter-on-quarter and 5.0% year-on-year, meeting expectations [1] - The net interest income (NII) for Q4 2025 grew by 7.3% year-on-year, contributing to an annual adjusted NII increase of 1.4%, outperforming consensus expectations [1] - The average HIBOR for 2025 decreased by over 160 basis points compared to the previous year, yet the company's adjusted net interest margin (NIM) only declined by 6 basis points to 1.58%, supported by structural optimization [1] Growth Drivers - The company experienced a 5% year-on-year increase in average interest-earning assets and an 8% rise in deposits, both outpacing the 4% growth in average interest-bearing liabilities [1] - The company focused on comprehensive customer management, enhancing cash management and payroll services, resulting in a 7 percentage point increase in CASA deposits by the end of 2025 [1] - Total loans increased by 2.4% year-on-year, with a moderate growth of 2% in Hong Kong loans and a robust 10% increase in Southeast Asian loans [1] Non-Interest Income - The adjusted non-interest income for 2025 surged by 40% year-on-year, with fee income rising by 14%, driven by significant growth in wealth management-related services [2] - Other adjusted non-interest income skyrocketed by 143%, attributed to accurate trading rhythm judgments on the proprietary side [2] - The company actively explored the needs of top corporate clients, diversifying income sources through foreign exchange, precious metals, and interest rate products [2] Profit Forecast and Valuation - The company introduced profit forecasts for 2026 and 2027, estimating revenues of HKD 77.3 billion and HKD 78.4 billion, and net profits of HKD 40 billion and HKD 40.5 billion respectively [2] - The current trading price corresponds to 1.2x and 1.1x the projected P/B for 2026 and 2027, leading to a target price increase of 53% to HKD 45.1, reflecting an upside potential of 11.2% [2]