UBS: BANKCOMM 1Q26 Net Profit In Line, Revenue Lags Peers

UBS reported that BANKCOMMachieved a 3% YoY increase in net profit for 1Q26, meeting expectations, while revenue grew 4.9% YoY, lagging behind peers' average of 8.5%. The decline in net fee and commission income contributed to this underperformance. Net interest income rose 7.2% YoY, aligning with peers. Operating expenses decreased by 2.7% YoY, leading to a 9.9% growth in pre-provision operating profit. Despite a 12.5% increase in asset impairment losses, profit before tax rose 8.7%, but a significant rise in income tax expenses resulted in a modest 3.1% increase in net profit after tax. The bank is rated Buy with a target price of HKD8.6.