[ET Net News Agency, 21 August 2019] Credit Suisse raised its target price for Postal
Savings Bank of China (PSBC)(01658) to HK$5 from HK$4.6 and maintained its "neutral"
rating.
The research house said PSBC's 2Q/1H net profit of Rmb18.9bn (+18%) and Rmb37.4bn (+15%)
track ahead of Credit Suisse's estimates. Meanwhile, non-interest income (+15%) was better
on stronger fees and revaluation gains.
But annualised credit cost for 1H stayed elevated at 114bp (versus 87bp in 1H 2018).
Credit Suisse raised its FY2019-21 earnings forecasts by 5-7%. (KL)