De-risking strategy highlights asset quality
- FY23 results in line; net profit increased 58% y-o-y to HK$17.8bn
- Following de-risking strategy, NPL ratio stabilized at 2.83% in FY23, down 2bps h-o-h
- We expect credit costs to drop 5-20bps in FY24/25F from c.70bps in FY23, but remain more conservative than consensus
- Maintain HOLD with TP revised down to HK$97 with higher ECL charge assumptions