[ET Net News Agency, 12 June 2020] Morgan Stanley lowered its target price for Bank of
East Asia (BEA)(00023) to HK$23 from HK$25 and maintained its "overweight" rating.
The research house expects 1H to have been challenging for BEA. It will have had very
little loan growth plus NIM (net interest margin) pressure driven by lower rates in HK and
continued derisking of the Chinese book.
In addition, Morgan also sees lower trading income led by mark-to-market losses. Partly
offsetting this, wealth management revenues should have remained robust, and it expects
costs will remain under control.
Morgan lowered its 2020 EPS estimate 45%, mainly reflecting lower NIM and trading income
and higher loan loss charges. It lowered its EPS estimates 15% for 2021 and 12% for 2022,
reflecting lower NIM and slower balance sheet growth. (KL)
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00023 BANK OF E ASIA
Nominal 
9.120 -0.070 (-0.762%) Others
12/06/2020 17:47
{I-bank focus}Morgan cuts Bank of East Asia (00023) to HK$23
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