[ET Net News Agency, 12 July 2018] Credit Suisse lowered its target price for China
Minsheng Banking (MSB)(01988) to HK$5 from HK$5.17, and reiterated its "underperform"
rating.
The research house tweaked its operating forecasts for MSB, including reclassification
of interest income in non-interest income due to IFRS 9 and raised its FY2018-20 EPS
forecasts by 1-9%.
Credit Suisse said MSB is trying to enhance its asset yields by focusing on micro-SME
loans, with full-year loan growth target of 10% for the bank. It believes NIM will remain
suppressed with higher funding costs due to intense competition for deposits. It estimated
the bank's earnings growth to remain muted at 4% on flat core earnings.
Credit Suisse believes the bank may manage to lower its credit cost YoY to 106bp from
122bp of loans in 2017. (KL)