[ET Net News Agency, 13 March 2018] UBS Global Research said Agricultural Bank of China
(ABC)(01288) Rmb100bn A-share private placement potentially boosts up its CET-1 ratio
(currently 10.6%) by 80bp.
The research house views this as a positive move as it largely removes the market
overhang, narrow the bank's capital gap with other SOE banks, and support its future
growth.
Fundamentally, UBS thinks other large SOE banks do not need to replenish capital
externally due to their adequate capital position and sufficient ROE, especially given the
recent regulatory relaxation on provision requirement, which may further boost banks'
capital.
UBS maintained its "neutral" rating on ABC, with a price target at HK$3.9, which implies
a 0.74x 2018 P/BV ratio currently without taking into account the equity raising. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
01288 ABC
Nominal 
3.540 +0.040 (+1.143%) Others
13/03/2018 16:10
[I-bank focus]ABC's placement supports future growth - UBS
| Remark: | Real time quote last updated: 24/04/2024 17:04 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |