[ET Net News Agency, 12 July 2018] Credit Suisse lowered its target price for Postal
Savings Bank of China (PSBC)(01658) to HK$5.2 from HK$6, and downgraded its rating to
"neutral" from "outperform" after the stock's relative outperformance.
The research house said PSBC's double-digit earnings growth for the next two years will
be mainly driven by its faster loan growth (15% versus 9-10% growth for the sector) to
raise LDR to 50% by end-2019 as well as drive non-interest income growth from a low base.
Along with a declining CIR, Credit Suisse estimated the bank to attain 24.7% core
earnings growth in 2018; and with credit cost normalising to 84bp of loans (vs 64bp in
2017), it estimated its profit growth at 18%. (KL)