Gleng Hui October 31st | Bank of America Securities published a research report stating that the Bank of China's net profit for the first three quarters increased by 0.5% year-on-year, with a growth rate similar to its peers; core profit dropped by 2.5% year-on-year, reaching 79% of Bank of America's full-year forecast; return on equity (ROE) fell by 0.8 percentage points year-on-year. As for the third quarter, the common equity Tier 1 capital ratio (CET1) rose by 20 basis points to 12.23% on a quarterly basis. The bank maintains its unchanged profit forecast for Bank of China, continuing with a "buy" rating and a target price of HK$4.15. Bank of America mentioned that Bank of China's net interest margin trend is weaker than most of its peers, falling by 7 basis points to 1.41% on a quarterly basis, but offset by stronger trading income. During the period, loans increased by 1.4% on a quarterly basis, and by 8.5% year-on-year; assets and deposits increased by 0.5% and 0.3% on a quarterly basis, and by 7.3% and 4.5% respectively year-on-year. The decline in fee income narrowed from a 7.6% year-on-year decline in the first half of the year to 3.9% in the first nine months. Other non-interest income surged by 121% in the third quarter, increasing by 36% on a quarterly basis, driving up total revenue for the quarter.