Bank of East Asia (BKEAY) AI Stock Analysis

• Market Cap: $4.97B
• Dividend Yield: 5.06%
• Average Volume (3M): 377.00
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.16
• Revenue Growth: -7.33%
• EPS Growth: 50.14%
• Country: US
• Employees: 7,880
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.04
• Shares Outstanding: 2,641,671,100
• 10 Day Avg. Volume: 1,094
• 30 Day Avg. Volume: 377
• PEG Ratio: -0.61
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 5.86
• Enterprise Value/Market Cap: -3.42
• Enterprise Value/Revenue: -0.67
• Enterprise Value/Gross Profit: -1.20
• Enterprise Value/Ebitda: -7.99
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.23
• Revenue Forecast (FY): $2.71B

• Rating: 67 Neutral
• Price Target: $2.00 ▲(14.94% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by solid underlying profitability and a strengthening balance-sheet leverage position, partially offset by pronounced revenue and cash-flow volatility that reduces earnings visibility. Technicals are modestly supportive but not strongly trending, while valuation helps with a moderate P/E and a relatively high dividend yield.

Positive Factors

Balance-sheet strength

Improving leverage and a large equity base materially strengthen solvency and regulatory headroom. This durable capital cushion supports sustained lending, absorbs credit shocks, and gives management flexibility on provisioning, dividends and strategic investments over the medium term.

Consistent profitability

Recurring positive net income and historically strong margins indicate core operating resilience. Consistent earnings enable reinvestment in distribution, support provisioning through cycles, and underpin long-term shareholder returns even as top-line volatility fluctuates.

Diversified banking franchise

A multi-segment franchise (retail, commercial, wealth and trade services) creates diversified revenue sources—net interest income plus fees—which reduces single-market dependency, supports cross-sell, and helps stabilize revenues across economic cycles.

Negative Factors

Revenue and cash-flow volatility

Large year-to-year swings in revenue and cash flow impair earnings visibility and planning. Persistent volatility complicates capital allocation, makes stress-testing outcomes more uncertain, and raises the likelihood of needing external liquidity or curtailing growth during down cycles.

Inconsistent cash generation

Intermittent free-cash-flow means internal funding for lending and dividends is unreliable. Management may need to lean on wholesale funding or capital actions in low-cash years, increasing funding cost sensitivity and exposing the bank to liquidity and refinance risk over multi-quarter horizons.

Margin normalization

Declining net margin after a revenue rebound suggests pressure on interest margins or rising costs. If margins remain below historic levels, long-term return on equity and internal capital generation will be constrained, limiting organic growth and balance-sheet repair capacity.

Bank of East Asia Business Overview & Revenue Model

Company Description

The Bank of East Asia, Limited, together with its subsidiaries, provides various banking and related financial services. Its personal banking services include corporate, individual, savings, current, time deposit, and supreme accounts; and fixed and call deposits, foreign currency deposits, MAS services, and auto-payroll products, as well as safe deposit boxes and remittance services. The company also provides corporate banking services, such as SME loans and financing guarantee schemes; corporate and commercial financing products, including syndicated and construction loans, acquisition and structured financing, working capital financing, share financing and IPO-related loans, and commercial mortgages; trade finance services and expert trade solutions; factoring services; import and export trade finance; guarantee services; eTradeConnect that allows buyers and sellers to connect, transact, share information, and submit applications for financing through a single platform; cash management services; corporate wealth management products; foreign exchange and treasury products; trade settlement and financing services; onshore and offshore loans; and marine cargo, property, trade credit, employee compensation, pet, medical, life, savings, and endowment insurance plans. In addition, it offers private banking services comprising investment advisory services; investment solutions, such as unit trusts, linked deposits, currency trading and management, global equities and bonds investments, structured products, and options and derivatives; portfolio management services; securities and futures broking services; cyber banking, credit cards, and ATM; and various international services. The company operates 150 outlets in Hong Kong, rest of Greater China, Southeast Asia, the United Kingdom, and the United States. The Bank of East Asia, Limited was incorporated in 1918 and is headquartered in Central, Hong Kong.

How the Company Makes Money

The Bank of East Asia generates revenue through multiple streams, primarily from interest income, fees, and commissions. Interest income is derived from lending activities, including personal loans, mortgages, and corporate loans, where the bank earns interest on the principal amount lent to borrowers. Fees and commissions contribute significantly to revenue, originating from services such as account management, transaction processing, investment advisory, and wealth management. Additionally, the bank engages in treasury operations, involving foreign exchange trading and investment in securities, which also contribute to its earnings. Strategic partnerships and a focus on digital banking initiatives further enhance revenue generation by expanding customer reach and streamlining operations.

Bank of East Asia Financial Statement Overview

Summary

Financials are supported by consistent profitability and a resilient capital/leverage profile (debt-to-equity improving meaningfully over time). Offsetting this strength, revenue and cash flow are highly volatile year to year, with deeply negative operating/free cash flow in 2023–2024 and a lower net margin in 2025 versus prior years, reducing predictability.

Income Statement

Profitability is solid overall, with positive net income across all annual periods and strong profit margins in 2021–2024. Revenue has been volatile (sharp declines in 2020 and 2023 followed by large rebounds in 2022 and especially 2025), which reduces earnings predictability. 2025 shows lower net margin versus prior years, suggesting profitability normalized despite the revenue surge.

Balance Sheet

Balance sheet looks resilient for a regional bank, supported by a very large equity base relative to debt and improving leverage trends (debt-to-equity falling from ~0.62 in 2020 to ~0.28 in 2025). Total assets are stable to growing over time. A key drawback is data inconsistency in profitability on equity (2025 shows 0.0), which limits confidence in the latest-period return profile.

Cash Flow

Cash generation is mixed. The company produced strong positive operating and free cash flow in 2022 and again in 2025, with free cash flow roughly in line with net income in 2025. However, operating and free cash flow were deeply negative in 2023–2024, and free cash flow growth is highly volatile (large swing negative in 2025 following the rebound). This variability increases reliance on funding/liquidity management through the cycle.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.48B	15.43B	14.54B	28.61B	15.82B
Gross Profit	14.35B	15.43B	44.25B	17.27B	15.82B
EBITDA	5.11B	0.00	6.13B	5.82B	7.11B
Net Income	3.50B	4.61B	4.12B	4.36B	5.27B
Balance Sheet
Total Assets	920.90B	877.76B	860.36B	882.83B	907.47B
Cash, Cash Equivalents and Short-Term Investments	54.57B	41.30B	89.59B	112.15B	120.64B
Total Debt	29.37B	18.42B	14.70B	51.16B	58.95B
Total Liabilities	815.28B	772.02B	752.03B	786.57B	805.39B
Stockholders Equity	105.32B	105.46B	97.97B	95.99B	101.78B
Cash Flow
Free Cash Flow	6.51B	-8.28B	-17.60B	9.86B	1.71B
Operating Cash Flow	6.91B	-7.74B	-16.92B	10.41B	2.32B
Investing Cash Flow	-39.84B	-318.00M	-511.00M	2.13B	2.67B
Financing Cash Flow	38.75B	4.94B	-1.74B	-31.28B	41.78B

Bank of East Asia Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKEAY, the sentiment is Neutral. The current price of 1.74 is below the 20-day moving average (MA) of 1.94, below the 50-day MA of 1.83, and above the 200-day MA of 1.64, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 46.90 is Neutral, neither overbought nor oversold. The STOCH value of 36.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BKEAY.

Bank of East Asia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UCB	78 Outperform	$3.89B	12.28	9.23%	3.02%	5.63%	65.11%
IBOC	76 Outperform	$4.25B	10.13	14.31%	2.03%	0.99%	4.94%
ASB	74 Outperform	$4.41B	9.54	3.78%	3.51%	-1.44%	-21.65%
TCBI	71 Outperform	$4.26B	14.18	9.44%	―	5.19%	3454.95%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BKEAY	67 Neutral	$4.97B	12.47	4.41%	5.06%	-7.33%	50.14%
BANF	65 Neutral	$3.79B	15.47	13.85%	1.70%	6.55%	12.94%