[ET Net News Agency, 11 January 2018] Nomura Research lifted its target price for
Agricultural Bank of China (ABC)(01288) to HK$3.15 from HK$2.86, and maintained its
"reduce" rating.
The research house said ABC holds the largest non-loan assets relative to its book among
the big four banks, affecting its NIM recovery despite a strong deposit franchise.
Compared to 65% LDR, ABC's loans accounted for a lower 53% of its total AIEA (average
interest bearing assets), well below the big four average of 58%, and largely in line with
that of mid-cap banks at 52% by 1H 2017.
Nomura sees ABC's relatively small loan book versus large peers capping its NIM recovery
in FY2018/19, despite its strong deposit franchise and low funding cost at 1.53% (of which
deposit cost was 1.36% by 1H 2017, higher versus CCB but lower than ICBC/BOC). (KL)
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01288 ABC
Nominal 
3.540 +0.040 (+1.143%) Others
11/01/2018 11:50
[I-bank focus]Nomura lifts ABC (01288) to HK$3.15; "reduce"
| Remark: | Real time quote last updated: 24/04/2024 17:59 |
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