The Zhitong Finance App learned that DAMO released a research report saying that some local banks in Hong Kong will announce their results for the first half of the year this Friday (28th). They are expected to rebound during the Hong Kong Interbank Dividend (HIBOR) period, which will offset the effects of slowing loan growth and weak market climate. They are optimistic about HSBC Holdings (00005) and Standard Chartered Group (02888); they believe the weak outlook will keep the ratings of local banks “in sync with the big market.”

The bank expects that the Bank of Hong Kong's performance in the second quarter will be mixed and that credit quality may remain strong. Although risks related to commercial real estate will further subside, the loan losses of Hang Seng and the Bank of East Asia (00023) will continue to rise, but they are lower than the level of the first half of 2022. The Bank of Hong Kong's profit forecast for this year was also raised to reflect that HIBOR for the second quarter was higher than the original forecast; however, it is expected that US interest rates will fall to about 3.5% by 2025, so Hang Seng and Bank of China Hong Kong's profit forecasts for next year were lowered, and the East Asian forecast for next year was moderately raised.

According to the report, the Bank of East Asia's net interest income in the first half of the year may increase 7.5% in the first half of 2022, and that non-interest income will rebound from the second half of 2022, repeating the strong performance of the first half of last year; handling fee revenue may improve after customs clearance; while costs will rise 7% year-on-year due to inflationary pressure. Additionally, the company's profit forecast for this year and next two years was raised by 25%/5% to reflect an increase in non-operating income.