UBS: Lowered target price of East Asia Bank (00023.HK) to 13.1 Hong Kong dollars, maintaining a "neutral" rating.

Capital Intelligence APP learned that Credit Suisse released a research report stating that due to the continued exposure of Bank of East Asia (00023.HK) to the risks of mainland and Hong Kong commercial real estate, it is expected that high credit costs will persist in the years 2026-2027. The target price has been lowered from 14.5 Hong Kong dollars to 13.1 Hong Kong dollars, while maintaining a "neutral" rating. Credit Suisse has lowered Bank of East Asia's target market-to-book ratio for 2026 from 0.4 times to 0.33 times, to reflect the possibility that persistently high credit costs may limit the short-term valuation upside. It is also expected that even if the dividend payout ratio remains unchanged, moderate profit growth should still support an increase in medium-term earnings per share.