Benefit from FX exposure
- BOC benefits from US rate hike; has the largest FX loan exposure among major China banks
- NPL ratio down by 13bps y-o-y to 1.33% in FY21 and 1.31% in 1Q22 despite high exposure to risky sectors
- Steady growth in fee income, with advantages in its open platform and cross-border products
- Reinstate BUY with TP of HK$ 3.85