Glonghui, October 31 | According to a report published by CICC Hong Kong, China Bank of China Hong Kong released its third quarter results report. Revenue increased by 19% and 14% from year to quarter, respectively, and operating profit increased by 9% and 12% from year to quarter, respectively. The performance fell slightly short of the company's expectations, mainly due to the obvious rise in credit costs due to real estate exposure. Bank of China Hong Kong made a provision of 1.5 billion yuan for the third quarter. The bank estimates that the annualized credit cost for a single quarter was 35 basis points, up 36 basis points and 28 basis points from year to quarter, respectively. The bank believes that the obvious increase in credit costs this quarter is mainly due to the risk of exposure to commercial real estate in mainland China. According to CICC, since the net interest income performance of BOCHK was slightly better than the company's expectations and hedged rising credit costs, the bank kept its profit forecast basically unchanged; it maintained its “outperform the industry” rating, but since there is still great uncertainty about the company's asset quality, the target price of BOCHK was lowered by 12.4% to HK$25.8.