[ET Net News Agency, 20 February 2018] UOB Kay Hian lowered its target price for
Industrial & Commercial Bank Of China (ICBC)(01398) to HK$8.65 from HK$8.76, and
reiterated its "buy" rating.
The research house expects ICBC to provide earnings growth of 10% in 2018, driven by
loan growth of 7.7%, gradual NIM expansion of 2bp and lower credit cost of 72bp. There is
ample demand for project financing and residential mortgages, while residential property
developments targeted for rental provide a new avenue for loan growth.
It said ICBC is a core holding for its immense scale, cost efficiency, capital adequacy
and depth of its management team. UOBKH trimmed its net profit forecasts by 1.4% for 2018
and 2.2% for 2019 as fees would be under significant pressure while provisions are likely
to remain elevated. (KL)