0818 GMT - Bank of China's earnings are likely to be lifted by a stronger overseas interest rate outlook, say DBS Group Research analysts in a note. The lender's overseas segment net-interest margin is likely to see fewer headwinds, as DBS doesn't expect the Fed to cut rates in 2026 with the current inflation environment. Hong Kong's benchmark interest rate is likely to normalize from extreme lows recorded last year in 2Q-3Q, they add. Bank of China has also locked in some foreign-currency bonds when interest rates were high, they note. DBS raises its 2026-2027 earnings estimates for Bank of China by 5%-8%. DBS lifts its target price to HK$5.80 from HK$5.30 and reiterates its buy rating. Shares last closed 1.1% higher at HK$5.31. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

June 05, 2026 04:18 ET (08:18 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.