BROKER CALL - HK's Bank of East Asia upgraded to buy; target 58 hkd - GS
HONG KONG (XFN-ASIA) - Goldman Sachs upgraded Bank of East Asia (BEA) to "buy" from "neutral" and raised the target price to 58 hkd from 42 to reflect the Hong Kong bank's strong China business and earnings resilience.
The investment bank raised its earnings per share estimates by 20 pct to 3.09 hkd for 2008 and by 19.2 pct to 4.03 for 2009.
"We project 35 pct net profit after tax growth for BEA China in 2008, rising to 39 pct in 2009 to 1.75 bln hkd, accounting for 28 pct of group profits," it noted.
It noted that BEA is the first foreign bank to be allowed to issue debit cards in China, a move that will accelerate its China deposit build-out.
At 11.16 am, BEA was up 1.5 hkd or 3.39 pct at 45.7.
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Bank of East Asia 0023
Bank of East Asia 0023
by winston » Thu May 15, 2008 2:47 pm
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Re: Bank of East Asia 0023
by winston » Tue Aug 05, 2008 2:31 pm
Not vested.
Bank of East Asia's first-half profit falls on CDO provisions
Bank of East Asia (0023), Hong Kong's third-biggest lender by assets, said first-half profit fell 52 percent as it set aside more provisions for credit market investments.
Net income in the six months to June 30 dropped to HK$894 million , or HK$0.54 a share, from HK$1.88 billion or HK$1.20 a year earlier, the Hong Kong-based bank.
Profit trailed the HK$1.65 billion median estimate among five analysts surveyed by Bloomberg News.
BLOOMBERG
Bank of East Asia's first-half profit falls on CDO provisions
Bank of East Asia (0023), Hong Kong's third-biggest lender by assets, said first-half profit fell 52 percent as it set aside more provisions for credit market investments.
Net income in the six months to June 30 dropped to HK$894 million , or HK$0.54 a share, from HK$1.88 billion or HK$1.20 a year earlier, the Hong Kong-based bank.
Profit trailed the HK$1.65 billion median estimate among five analysts surveyed by Bloomberg News.
BLOOMBERG
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Re: Bank of East Asia 0023
by winston » Wed Aug 06, 2008 6:19 am
Not vested.
BEA profit dives 52pc on credit market losses
Stephanie Tong
Wednesday, August 06, 2008
Bank of East Asia (0023) yesterday announced its first year-on-year drop in interim net profit since 2002, posting a decline of 52.4 percent on the back of collateralized debt obligation and structured investment vehicle writedowns.
Net profit in the six months ended June 30 had been expected by analysts to fall by only 13 to 20 percent. Instead, the bank reported an interim net profit of HK$894 million, compared to HK$1.877 billion the previous year.
In its previous interim result, the bank posted net profit of HK$2.27 billion for the six months to the end of December.
"No chief executive likes to see his company faring badly in its performance compared with the previous year. I am going to have to do better," chairman and CEO David Li Kwok-po said.
Earnings per share fell to 54 HK cents, and the bank cut its interim dividend by 52.1 percent to 23 HK cents per share.
BEA shares fell by as much as 12.2 percent in intraday trading after the results announcement, but rallied slightly to close at HK$33.20, down 8.29 percent.
BEA wrote down US$197.5 million (HK$1.54 billion) on its SIV and CDO investments.
Of the 14 CDOs the bank holds, 12 of them will mature during or before 2010.
"If they are not in default, we could write back the provisions. So far, none of them were seen to default," said BEA chief financial controller Daniel Wan Yim-keung.
Last month, Wan said, the bank sold all its "small" holdings of Fannie Mae and Freddie Mac notes. BEA booked an one-off gain of HK$467 million in the first half. But Wan said there would not be a fire sale of assets to compensate for its CDOs and SIV losses.
BOC International analyst Wong Kwok-wai said BEA's core business performance remains good. "The fall in BEA's result is mainly due to the writedown on SIVs and CDOs."
Net interest income climbed 26.1 percent to HK$3.48 billion. Non- interest income, excluding CDO and equity investments, rose 20.2 percent to HK$2.11 billion.
Net interest margin narrowed two basis points to 1.91 percent, while impairment losses on loans and advances fell by 34.5 percent to HK$89 million.
Total loan growth rose 21 percent to HK$245.4 billion. Loan growth in China surged 68 percent to HK$93.6 billion, exceeding the bank's target of 30 percent.
BEA profit dives 52pc on credit market losses
Stephanie Tong
Wednesday, August 06, 2008
Bank of East Asia (0023) yesterday announced its first year-on-year drop in interim net profit since 2002, posting a decline of 52.4 percent on the back of collateralized debt obligation and structured investment vehicle writedowns.
Net profit in the six months ended June 30 had been expected by analysts to fall by only 13 to 20 percent. Instead, the bank reported an interim net profit of HK$894 million, compared to HK$1.877 billion the previous year.
In its previous interim result, the bank posted net profit of HK$2.27 billion for the six months to the end of December.
"No chief executive likes to see his company faring badly in its performance compared with the previous year. I am going to have to do better," chairman and CEO David Li Kwok-po said.
Earnings per share fell to 54 HK cents, and the bank cut its interim dividend by 52.1 percent to 23 HK cents per share.
BEA shares fell by as much as 12.2 percent in intraday trading after the results announcement, but rallied slightly to close at HK$33.20, down 8.29 percent.
BEA wrote down US$197.5 million (HK$1.54 billion) on its SIV and CDO investments.
Of the 14 CDOs the bank holds, 12 of them will mature during or before 2010.
"If they are not in default, we could write back the provisions. So far, none of them were seen to default," said BEA chief financial controller Daniel Wan Yim-keung.
Last month, Wan said, the bank sold all its "small" holdings of Fannie Mae and Freddie Mac notes. BEA booked an one-off gain of HK$467 million in the first half. But Wan said there would not be a fire sale of assets to compensate for its CDOs and SIV losses.
BOC International analyst Wong Kwok-wai said BEA's core business performance remains good. "The fall in BEA's result is mainly due to the writedown on SIVs and CDOs."
Net interest income climbed 26.1 percent to HK$3.48 billion. Non- interest income, excluding CDO and equity investments, rose 20.2 percent to HK$2.11 billion.
Net interest margin narrowed two basis points to 1.91 percent, while impairment losses on loans and advances fell by 34.5 percent to HK$89 million.
Total loan growth rose 21 percent to HK$245.4 billion. Loan growth in China surged 68 percent to HK$93.6 billion, exceeding the bank's target of 30 percent.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Bank of East Asia 0023
by winston » Thu Aug 07, 2008 7:55 am
Not vested.
Targets on BEA slashed after profit plunge
Stephanie Tong
Thursday, August 07, 2008
Investment banks yesterday cut their target prices for Bank of East Asia (0023) stock after it stunned the market the previous day by reporting a plunge of more than 50 percent in first-half net profit.
Morgan Stanley, JPMorgan and Goldman Sachs chopped BEA's target price to HK$29, HK$38 and HK$43, respectively. The shares tumbled 8.29 percent to close at HK$33.20 on Tuesday after the interim results were announced.
"The key downside risk is asset quality," said JPMorgan analyst Michael Chan.
Asset quality of BEA is currently benign but impaired loans are rising.
Of the lender's HK$245.4 billion total loans in the first half, 13.2 percent were overseas. The overseas impaired loan ratio climbed 50 basis points from a year ago to 1.2 percent.
"Any pickup in profit and loss charges will impact earnings sharply as the bank's profitability is relatively weak," said Morgan Stanley analyst Anil Agarwal.
For the first six months ended June 30, BEA posted net profit of HK$894 million, a 52.4 percent drop from HK$1.877 billion the previous year.
"First half was not a one-off, the second half is likely to be weak too," Agarwal said. "A large chunk of BEA's earnings last year was made up of trading or disposal gains. They are unlikely to recur."
Last year, BEA booked a combined one-off gain of HK$1.46 billion on revaluation of investment properties and sale of assets. One-off gain in the first half, however, was only HK$467 million.
Targets on BEA slashed after profit plunge
Stephanie Tong
Thursday, August 07, 2008
Investment banks yesterday cut their target prices for Bank of East Asia (0023) stock after it stunned the market the previous day by reporting a plunge of more than 50 percent in first-half net profit.
Morgan Stanley, JPMorgan and Goldman Sachs chopped BEA's target price to HK$29, HK$38 and HK$43, respectively. The shares tumbled 8.29 percent to close at HK$33.20 on Tuesday after the interim results were announced.
"The key downside risk is asset quality," said JPMorgan analyst Michael Chan.
Asset quality of BEA is currently benign but impaired loans are rising.
Of the lender's HK$245.4 billion total loans in the first half, 13.2 percent were overseas. The overseas impaired loan ratio climbed 50 basis points from a year ago to 1.2 percent.
"Any pickup in profit and loss charges will impact earnings sharply as the bank's profitability is relatively weak," said Morgan Stanley analyst Anil Agarwal.
For the first six months ended June 30, BEA posted net profit of HK$894 million, a 52.4 percent drop from HK$1.877 billion the previous year.
"First half was not a one-off, the second half is likely to be weak too," Agarwal said. "A large chunk of BEA's earnings last year was made up of trading or disposal gains. They are unlikely to recur."
Last year, BEA booked a combined one-off gain of HK$1.46 billion on revaluation of investment properties and sale of assets. One-off gain in the first half, however, was only HK$467 million.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
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Re: Bank of East Asia 0023
by winston » Wed Sep 24, 2008 3:49 pm
Not vested.
Bank of E.Asia denies problems after shares fall
HONG KONG, Sept 24 (Reuters) - Hong Kong lender Bank of East Asia denied on Wednesday local rumours questioning its stability, which had drawn hundreds of people to at least one of its branches and drove its shares down more than 7 percent.
The lender affirmed in a statement that its capital adequacy ratio stood at 14.6 percent, well above international standards, though it said its total exposure to troubled Lehman Brothers "Upon learning of the malicious rumours, the management of BEA immediately reported the matter to the police," the lender said in a statement. "Such rumours have no basis in fact."
A spokesman for the Hong Kong Monetary Authority, the city's de facto central bank, reaffirmed the territory's banking system remained sound.
"Local banks are well capitalised and highly liquid. Their asset quality is good and their operations have been strong. The rumours of the financial instability of Bank of East Asia are unfounded," the spokesman said.
Bank of E.Asia denies problems after shares fall
HONG KONG, Sept 24 (Reuters) - Hong Kong lender Bank of East Asia denied on Wednesday local rumours questioning its stability, which had drawn hundreds of people to at least one of its branches and drove its shares down more than 7 percent.
The lender affirmed in a statement that its capital adequacy ratio stood at 14.6 percent, well above international standards, though it said its total exposure to troubled Lehman Brothers "Upon learning of the malicious rumours, the management of BEA immediately reported the matter to the police," the lender said in a statement. "Such rumours have no basis in fact."
A spokesman for the Hong Kong Monetary Authority, the city's de facto central bank, reaffirmed the territory's banking system remained sound.
"Local banks are well capitalised and highly liquid. Their asset quality is good and their operations have been strong. The rumours of the financial instability of Bank of East Asia are unfounded," the spokesman said.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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HK & China - Market Direction & Strategy
by Cherry » Wed Sep 24, 2008 4:16 pm
Hong Kong's Bank of East Asia
HONG KONG - Hong Kong's Bank of East Asia (BEA) moved to quell rumours about
its stability on Wednesday, as hundreds of investors gathered outside branches across the city.
The rumours are believed to be related to BEA's exposure to assets linked to failed investment bank Lehman Brothers and insurance giant AIG.
The statement said the bank's outstanding exposure was HK$422.8 million (US$54.2 million) to Lehman's and HK$49.9 million to AIG. -- AFP
HONG KONG - Hong Kong's Bank of East Asia (BEA) moved to quell rumours about
its stability on Wednesday, as hundreds of investors gathered outside branches across the city.
The rumours are believed to be related to BEA's exposure to assets linked to failed investment bank Lehman Brothers and insurance giant AIG.
The statement said the bank's outstanding exposure was HK$422.8 million (US$54.2 million) to Lehman's and HK$49.9 million to AIG. -- AFP
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Re: Bank of East Asia 0023
by winston » Thu Sep 25, 2008 10:05 am
Not vested.
Chairman, tycoon invest in Bank of E.Asia
HONG KONG, Sept 25 (Reuters) - Bank of East Asia Ltd <0023.HK>, Hong Kong's fifth-ranked lender, won support from its chairman and, according to media reports, Hong Kong's richest man, who both bought shares after rumours about its financial stability had knocked its stock down more than 11 percent.
"Somebody is attacking BEA. I will buy Bank of East Asia shares tomorrow. People are doing this because they want to pummel the stock," David Li, BEA chairman and chief executive, said in televised comments made late on Wednesday.
Hong Kong tycoon Li Ka-shing bought BEA shares on Wednesday to show his confidence in the bank's future, a source close to the bank was quoted as saying by the Hong Kong Economic Times.
The South China Morning Post, citing an unnamed senior banking source, said the billionaire chairman of Cheung Kong Holdings had "bought the shares heavily".
BEA stock was quoted up 3.4 percent in early Thursday trade after closing down 6.9 percent on Wednesday.
Nobody at BEA was immediately available to comment on Thursday, but a half-page advertisement published by the bank in the Post sought to reassure its customers, noting the bank had the full support of the Hong Kong Monetary Authority, whose chief has called the rumours "unfounded".
"The business of the bank remains normal and all BEA branches continue to operate as usual," the advertisement said.
BEA, which last week revised down already-reported first-half earnings by almost 12 percent after unearthing losses hidden by one of its traders, was hit on Wednesday as rumours spread about liquidity problems, prompting thousands of BEA customers to withdraw cash at its branches.
Central bank and government officials scrambled to reassure the affluent city of 7 million that the territory's banking system, one of the world's most open, remained sound.
BEA, in which Spain's Criteria Caixacorp owns a stake of more than 9 percent, said the police were investigating the rumours.
Moody's Investors Service, which changed Bank of East Asia's rating to negative from stable last Friday, said on Wednesday that the bank's stability or capital adequacy were not a concern.
Chairman, tycoon invest in Bank of E.Asia
HONG KONG, Sept 25 (Reuters) - Bank of East Asia Ltd <0023.HK>, Hong Kong's fifth-ranked lender, won support from its chairman and, according to media reports, Hong Kong's richest man, who both bought shares after rumours about its financial stability had knocked its stock down more than 11 percent.
"Somebody is attacking BEA. I will buy Bank of East Asia shares tomorrow. People are doing this because they want to pummel the stock," David Li, BEA chairman and chief executive, said in televised comments made late on Wednesday.
Hong Kong tycoon Li Ka-shing bought BEA shares on Wednesday to show his confidence in the bank's future, a source close to the bank was quoted as saying by the Hong Kong Economic Times.
The South China Morning Post, citing an unnamed senior banking source, said the billionaire chairman of Cheung Kong Holdings had "bought the shares heavily".
BEA stock was quoted up 3.4 percent in early Thursday trade after closing down 6.9 percent on Wednesday.
Nobody at BEA was immediately available to comment on Thursday, but a half-page advertisement published by the bank in the Post sought to reassure its customers, noting the bank had the full support of the Hong Kong Monetary Authority, whose chief has called the rumours "unfounded".
"The business of the bank remains normal and all BEA branches continue to operate as usual," the advertisement said.
BEA, which last week revised down already-reported first-half earnings by almost 12 percent after unearthing losses hidden by one of its traders, was hit on Wednesday as rumours spread about liquidity problems, prompting thousands of BEA customers to withdraw cash at its branches.
Central bank and government officials scrambled to reassure the affluent city of 7 million that the territory's banking system, one of the world's most open, remained sound.
BEA, in which Spain's Criteria Caixacorp owns a stake of more than 9 percent, said the police were investigating the rumours.
Moody's Investors Service, which changed Bank of East Asia's rating to negative from stable last Friday, said on Wednesday that the bank's stability or capital adequacy were not a concern.
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Re: Bank of East Asia 0023
by winston » Thu Sep 25, 2008 3:46 pm
Not vested.
Citigroup cuts Bk of East Asia estimates on Lehman
HONG KONG, Sept 25 (Reuters) - Citigroup has cut earnings estimates for Bank of East Asia by 15 percent in 2008 and by 11 percent in 2009 on the back of Lehman Brothers It also [b]lowered the target price for Bank of East Asia shares to HK$26 [/b]from HK$32, Citigroup said in a research note on Thursday.
Citigroup said the bank's funding costs would rise to attract and retain deposits after nervous customers lined up to withdraw their savings, despite the lender denying rumours of its financial instability.
Citigroup cuts Bk of East Asia estimates on Lehman
HONG KONG, Sept 25 (Reuters) - Citigroup has cut earnings estimates for Bank of East Asia by 15 percent in 2008 and by 11 percent in 2009 on the back of Lehman Brothers It also [b]lowered the target price for Bank of East Asia shares to HK$26 [/b]from HK$32, Citigroup said in a research note on Thursday.
Citigroup said the bank's funding costs would rise to attract and retain deposits after nervous customers lined up to withdraw their savings, despite the lender denying rumours of its financial instability.
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Re: Bank of East Asia 0023
by mojo_ » Thu Sep 25, 2008 4:30 pm
Bank of East Asia Singapore branch hit by withdrawals:report
By V. Phani Kumar
Last update: 4:20 a.m. EDT Sept. 25, 2008
HONG KONG (MarketWatch) -- Dozens of customers withhdrew money from a Singapore branch of Bank of East Asia
Thursday, according to an AFP news report. The development came a day after the Hong Kong-based bank suffered a run in Hong Kong, in the wake of rumors about the lender's financial stability. The Hong Kong Monetary Authority Wednesday denied the rumors, adding that it would supply liquidity to Bank of East Asia, or any other bank, if needed. Bank of East Asia shares ended 3.4% higher in Hong Kong Thursday, after slumping 6.9% Wednesday.
Not what but when.
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Re: Bank of East Asia 0023
by winston » Mon Oct 27, 2008 5:29 pm
Not vested.
Bank of East Asia issues big '08 profit warning
HONG KONG, Oct 27 (Reuters) - The Bank of East Asia (0023.HK: Quote, Profile, Research, Stock Buzz) on Monday said its year-end profits would fall substantially as the bank was forced to dispose of its entire collateralized debt obligation (CDO) portfolio after its value dropped.
BEA said total losses related to the disposal would be HK$3.5 billion. BEA said it has completed the disposal.
Bank of East Asia issues big '08 profit warning
HONG KONG, Oct 27 (Reuters) - The Bank of East Asia (0023.HK: Quote, Profile, Research, Stock Buzz) on Monday said its year-end profits would fall substantially as the bank was forced to dispose of its entire collateralized debt obligation (CDO) portfolio after its value dropped.
BEA said total losses related to the disposal would be HK$3.5 billion. BEA said it has completed the disposal.
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