UBS has issued a research report revising its outlook for Bank of East Asia (00023). The bank's continued exposure to commercial real estate risks in mainland China and Hong Kong is expected to keep credit costs elevated through 2026–2027. Consequently, UBS has lowered its target price from HK$14.5 to HK$13.1, while maintaining a "Neutral" rating on the stock.

In its assessment, UBS has reduced the target price-to-book ratio for 2026 from 0.4x to 0.33x. This adjustment reflects the view that persistently high credit costs are likely to constrain any near-term upside potential for the valuation. The report also notes that, even with a stable dividend payout ratio, modest earnings growth should support an increase in the mid-term dividend per share.