JPMorgan released a research report stating that BOC Hong Kong's (02388) 2025 fiscal year results were in line with expectations, with pre-provision profit growth offset by higher credit costs. The bank slightly adjusted its 2026/27 profit forecasts by 1% and -1% respectively, maintaining a "Neutral" rating and an unchanged target price of HK$43.3. The report noted that BOC Hong Kong's net profit for 2025 was HK$40.1 billion, representing a 5% year-on-year increase, which was slightly 0.3% below the bank's expectations. The annualized return on equity stood at 11.5%, benefiting from a 9% growth in pre-provision profit, though partially offset by elevated credit costs. The company declared a final dividend of HK$1.255, with a dividend payout ratio of 56% for 2025, up from 55% in 2024. Credit costs rose to 74 basis points in the fourth quarter of 2025, bringing the full-year figure to 49 basis points, compared to 30 basis points in 2024, primarily due to increased provisions for mainland China and Hong Kong property loans, which accounted for 4.4% and 14.6% of total loans, respectively. JPMorgan views BOC Hong Kong's operational trends and 2025 dividend policy as aligning with market expectations. The dividend yield exceeding 5%, while not particularly attractive, is sufficient to support the share price. Additionally, the newly approved shareholder return plan may raise market expectations for share buybacks or special dividends ahead of the interim results in August 2026.