BOCHK expected to report 1H13 profits of HK$11.3b

It's largely flat compared to 1H12.

According to CCB International Securities, BOC Hong Kong (BOCHK) will report 1H13 results on 29 August 2013.

"We forecast net profit of HK$11.3b (vs. consensus of HK$11.1b) which is largely flat compared to 1H12 as our current year estimates for property revaluation gains (~HK$0.6b) are significantly lower than last year (HK$1.0b)."

Here's more from CCBI:

Our pre-provision operating profit forecast for 1H13 (HK$13.4b) is conservative if you take into account the 1Q13 actual figure of HK$7.0b. On a sequential basis, higher margins and improved fee income should more than offset any YoY increase in loan provisioning.

Key items to look for. (1) We expect margins to recover 7bp HoH to 1.61% as both HKD and CNH funding costs ease from 2H12 levels;

(2) In-line with peers, we expect loan provisioning to continue to normalize towards mid-cycle levels (8 bp); (3) Continued strong double-digit NII growth (+11% YoY) helped by continued CNH deployment; and

(4) Guidance on whether the dividend payout can inch towards the higher end of the 60-70% guided range given the bank’s strong capital position (core Tier-1 of 12.3% at year-end).