[ET Net News Agency, 11 July 2018] Credit Suisse cut its target price for China
Construction Bank (CCB)(01288) to HK$9.2 from HK$10.2, and reiterated its "outperform"
rating.
The research house lowered its FY2018-20 by 4-6% to account for higher loan reserve. It
expects CCB to report earnings growth that will track roughly in line with its asset
growth of 7.3% in 2018.
Credit Suisse adjusted credit cost estimates for CCB to 103bp in 2018 (from 96bp) due to
IFRS 9 impact and increase in reserve ratios. It now expects CCB to keep its credit cost
flat YoY, which implies a 9% increase in loan loss provisions. Credit Suisse estimated the
reserve to loan ratio for the bank will rise to 2.85% by end-2018.
For 2018, Credit Suisse estimated 10% PPoP growth for the bank. (KL)
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01288 ABC
Nominal 
3.510 -0.040 (-1.127%) Others
11/07/2018 17:54
[I-bank focus]Credit Suisse cuts CCB (01288) to HK$9.2
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