On July 12th, Guosen Securities reported that UBS lowered its earnings forecast for BOC Hong Kong's fiscal years 2024 to 2027 by 7% to 14% due to unexpected net interest margin squeeze, weak loan demand, and a dim outlook for credit costs, while the main uncertainty lies in the trend of non-performing loans related to Hong Kong commercial real estate. UBS raised its target price for BOC Hong Kong from HKD 21.8 to HKD 24, maintaining a 'neutral' rating. UBS expects mild operating profit growth of 0.6% year-on-year for BOC Hong Kong in the second quarter of 2024, and expects the net interest margin drop to narrow from 7 basis points in the first quarter to 4 basis points in the second quarter. Non-interest income is expected to record positive growth under the base factor. UBS also expects operating expenses to grow faster than the first quarter's 2.9% increase due to the company's continued investment in information technology.