德意志银行-香港银行业-hong kong banks 1h17 preview,nim transmission from higher rates remains a key focus-20170725-deutsche bank.pdfVIP

Deutsche Bank Markets Research Asia Industry Date Hong Kong Hong Kong Banks 25 July 2017 Banking / Finance Banks Results Franco Lam 1H17 preview: NIM transmission from Research Analyst (+852 ) 2203 6226 higher rates remains a key focus franco.lam@ 1H17 preview: fundamentals’ strength priced in by the market Top picks Benefiting from the higher rates in 1H17, the share prices of the HK banking DSBG (2356.HK),HKD16.94 Buy sector have done well so far, rising 21% YTD, in line with MSCI HK. Heading Dah Sing Financial (0440.HK),HKD57.35 Buy into interim results, we expect fundamentals to look strong, helped by higher Source: Deutsche Bank margins, better market activity, seasonally lower operating costs and benign asset quality. While core earnings are expected to improve 9% HoH (+11% Companies Featured YoY), we recently downgraded BoCHK to Sell as most of the positive catalysts are already in the price. We maintain our Sell call on BEA and Hold on HSB. BOC Hong Kong Holdings Sell (2388.HK),HKD37.55 DSB/DSF remain our only Buys in HK banks.