[ET Net News Agency, 19 April 2018] Credit Suisse assumed coverage on China Minsheng
Banking (MSB)(01988) with an "underperform" rating and adjusted its target price to HK$6.2
(from HK$8.2).
The research house adjusted its FY2018-19 by 8-11%. Although MSB's NIM stabilised in 2H
2017 after three years of significant contractions, earnings growth will remain elusive
due to slower loan growth (6.5%) on both liquidity (LDR of 95%) and capital (CET-1 ratio
of 8.5%) constraint.
Also, Credit Suisse believes MSB's assets are likely to see no growth this year on NSCA
(non-standard credit assets) contractions. MSB has one of the highest on-balance sheet
NSCA exposures at Rmb752bn as of 2017.
With one of the highest NSCA exposure (~16% of its on b/s total assets), the bank is
also among the most vulnerable if any of these NSCAs are asked to be taken to its loan
book, which could further constrain the bank's capacity to grow its risk weighted assets,
Credit Suisse added. (KL)
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01988 MINSHENG BANK
Nominal 
2.920 +0.080 (+2.817%) Others
19/04/2018 15:07
[I-bank focus]CS restarts Minsheng Bank (01988) at HK$6.2
| Remark: | Real time quote last updated: 24/09/2024 16:08 |
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