FY21 net profit rose 0.3% (7% below our forecast). This is the second consecutive year of it being worst among peers, after FY20’s 41.8% fall. The sharp fall in 4Q21 NIM to 1.67% (-26bp qoq, -20bp yoy) is a concern. The key positive is the 53bp rise in its FY21 core Tier 1 ratio to 9.04%, but this seemed to have come at the cost of growing loans at ‘only’ 5%. Remains our least preferred bank; maintain Hold. Our TP declines 10% to HK$2.6, driven by 7% lower FY22F-24F EPS, due to lower NIM.