Tai Fook maintained its rating held by 00626-HK, raising its list price to HK $4.20, using the valuation benchmark for fiscal year 2010. Tai Fook said that while profits were expected to bottom out in the first half of 2009, the rebound in the second half of 2009 was not expected to be high as impairment provisions remained at high levels and loan demand and fee income continued to be weak.

The bank also cut Volkswagen's profit forecast for FY09 to reflect increased provisions for loan losses and compensation to Lehman minibond investors; earnings per share are expected to fall 26 per cent in FY09 from a year earlier.

Volkswagen Finance closed up 1.25% at HK $4.06.