We maintain our fair value estimates for the state-owned enterprise banks in our coverage except for Agricultural Bank of China, which is seeing higher-than-expected net interest margins. We now increase ABC’s NIM assumption by 5 and 2 basis points in 2024 and 2025, respectively, which leads to a rise in fair value estimate to HKD 3.80 from HKD 3.50. Overall, there are no changes to our outlook for the other SOE banks.
We believe the average BOC customer is wealthier than the customer at one of its Big Four peers as total assets managed by BOC’s private bank accounted for roughly 20% of the bank’s retail AUM.
BOC's net interest margin will face rising downward pressure along with the reversal of the Fed's upward interest rate cycle.
|
Metric
|
601988
|
601288
|
601939
|
|---|---|---|---|
Price/Earnings (Normalized) | 6.84 | 7.19 | 6.21 |
Price/Book Value | 0.64 | 0.68 | 0.65 |
Price/Sales | 2.55 | 2.61 | 2.66 |
Price/Cash Flow | 7.07 | 11.81 | 9.68 |
|
Metric
|
601988
|
601288
|
601939
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
601988
|
601288
|
601939
|
|---|---|---|---|
Return on Assets (Normalized) | 0.71% | 0.66% | 0.85% |
Return on Equity (Normalized) | 10.36% | 11.13% | 11.26% |
Return on Invested Capital (Normalized) | — | — | — |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| JPMorgan Chase & Co
JPM
| Pfzdlztr | Dgfj | $601.0 Bil | |||
| Bank of America Corp
BAC
| Jlbwgybn | Rhnhx | $311.2 Bil | |||
| Wells Fargo & Co
WFC
| Chtghxsd | Lkzkh | $193.9 Bil | |||
| Royal Bank of Canada
RY
| Cwkvtypgs | Cdgrq | $173.5 Bil | |||
| HSBC Holdings PLC ADR
HSBC
| Wkhdhvh | Vxn | $165.3 Bil | |||
| Citigroup Inc
C
| Gzjbjbbt | Tysh | $119.5 Bil | |||
| Mitsubishi UFJ Financial Group Inc ADR
MUFG
| Jgklgdk | Zsdxv | $117.5 Bil | |||
| The Toronto-Dominion Bank
TD
| Zvxbzqpst | Yjrz | $111.6 Bil | |||
| UBS Group AG
UBS
| Wtlgxwsl | Lmczzbf | $99.3 Bil | |||
| Banco Santander SA ADR
SAN
| Vqbz | Vqrbyf | $76.0 Bil |
United States