DBS: Bank of China 3988 HK EQUITY | 601988 CH Equity – Buy Target Price HK$3.70 RMB4.10

Outperforms peers in terms of revenue growth

• 9M23 net profit to shareholders increased by 1.6% y-o-y to Rmb175bn, in line with market expectations 
• NIM dropped 13bps to 1.64%, supported by higher exposure to foreign currency assets; better than peers  
• Asset quality on an improving trend, with NPL ratio dropping 5bps YTD to 1.27%
• Reiterate BUY with TP revised down to HK$3.7 with negatives largely in price and attractive dividend yield of >10%