Bank of China 3988

[behappyalways]

Angry retail investors reported they had lost all their principal, while some even said they now owed money to Bank of China, even though investors are prohibited from borrowing money to buy the funds, according to Chinese social-media posts.

Bank of China sold oil’s May contract into a historic implosion in crude — and retail investors may have gotten crushed
https://www.marketwatch.com/story/bank- ... ck_seemore

[behappyalways]

中行原油寶負37元平倉　投資者輸突保證金 - 灣區直送-20200423 - 財經新聞 - 有線新聞 CABLE News
https://www.youtube.com/watch?v=qQRCFpFpZMQ

Angry retail investors reported they had lost all their principal, while some even said they now owed money to Bank of China, even though investors are prohibited from borrowing money to buy the funds, according to Chinese social-media posts.

Bank of China sold oil’s May contract into a historic implosion in crude — and retail investors may have gotten crushed
https://www.marketwatch.com/story/bank- ... ck_seemore

[behappyalways]

中行原油寶重創 苦主蝕本兼倒貼現上訪潮　學者：風險評估出錯所致 - 20200424 - 香港新聞 - 有線新聞 CABLE News
https://www.youtube.com/watch?v=1L9_tRKxE08


原油寶苦主血本無歸 到各地中國銀行申冤 - 20200425 - 香港新聞 - 有線新聞 CABLE News
https://www.youtube.com/watch?v=HHS7Pdvh5w8

中行原油寶負37元平倉　投資者輸突保證金 - 灣區直送-20200423 - 財經新聞 - 有線新聞 CABLE News
https://www.youtube.com/watch?v=qQRCFpFpZMQ

Angry retail investors reported they had lost all their principal, while some even said they now owed money to Bank of China, even though investors are prohibited from borrowing money to buy the funds, according to Chinese social-media posts.

Bank of China sold oil’s May contract into a historic implosion in crude — and retail investors may have gotten crushed
https://www.marketwatch.com/story/bank- ... ck_seemore

[winston]

not vested

Apr 29, 2020

<Blue Chip Results>BANK OF CHINA 1Q NP Adds 3.2% to RMB52.583B

BANK OF CHINA (03988.HK) unveiled the Report for the First Quarter ended 31 March 2020.

Operating income added 5.4% yearly to RMB148.543 billion.

Net profit hiked 3.2% to RMB52.583 billion. EPS was 17 fen.

Return on average total assets (ROA) was 0.96%, a decrease of 0.06 percentage points compared with the same period of 2019, and return on average equity (ROE) was 12.11%, a decrease of 0.92 percentage points compared with the same period of 2019.

Net interest income gained 7.6% to RMB96.166 billion. NIM was 1.8%, down 0.02 ppts.

Source: AAStocks Financial News

[winston]

not vested

Bank of China (3988 HK / 601988 CH) - Recovery in earnings growth

Bank of China (BOC) reported better-than expected pre-provision operating profit (PPOP) growth of +3.5% y/y in 4Q20, thanks to better net interest margin (NIM), strong fee income and better cost control.

A final dividend of CNY0.197 was declared, suggesting a dividend payout ratio of 32%, same as previous year.

Asset quality has been stable with non-performing loan (NPL) ratio edged down 2bps q/q to 1.46% in 4Q20.


3988 HK:

BOC-H is trading close to tough valuation of 0.38x forward Price-to-Book and offering more than 8% dividend yield, which could support share price performance till ex-div.

However, its PPOP growth momentum and return-on-equity were weaker than its peers.

We lift our Fair Value estimate to HK$3.30 by rolling over our estimates and a valuation multiple of 0.45x forward Price-to-Book, which implies -1s.d. to historical average.

We maintain our preference on China Construction Bank (939 HK) as the top pick among the Big-4 banks. BUY.

Source: OCBC

[winston]

not vested

Bank of China (3988 HK / 601988 CH) - Muted growth

Recent quarterly results highlighted BOC has weaker operating metrics with net interest margin (NIM) and growth in pre-provision operating profit, fee income & deposit were lower than its peers.

While asset quality remained stable, non-performing loan coverage ratio and capital position were lower than its peers.

We believe NIM could be under pressure as economic growth softens & policymakers are likely to maintain a relatively lower loan pricing and could fine-tune policy to support growth.

BOC-H is trading close to tough valuation of 0.33x (3988 HK) / 0.44x (601988 CH) forward Price-to-Book and offering close to 9% (3988 HK) / 7% (601988 CH) FY21e dividend yield, which could support share price performance till ex-div & would be appealing to income-oriented investors.

With its softer than peers operating metrics, we see limited positive catalysts for re-rating.

We maintain our Fair Value estimate at HKD3.3 (3988 HK) / CNY 3.6 (601988 CH) by rolling over our estimates and a valuation multiple of 0.4x(3988 HK) / 0.53x (601988 CH) forward Price-to-Book, which implies -1s.d. to historical average.

Within Chinese banks, we maintain our preference to those with strong retail network and franchise which could benefit from structural growth opportunities from retail banking and wealth management. BUY.

Source: OCBC