[ET Net News Agency, 21 November 2017] Credit Suisse said banks are a reflection of
macro, and the mild deceleration of October is not helpful. However, this was partly
driven by government restrictions ahead of the 19th Party Congress.
The research house expects credit and liquidity to remain abundant.
Credit Suisse said two key variables next year will be credit costs and operating costs.
Although the official targets for 2018 will be announced later, banks are generally
expecting similar loan growth, stable margins and similar credit costs as this year.
It thinks that banks should be able to report low-to-mid-teen EPS growth. Credit Suisse
prefers large banks over the joint stock banks. It tweaked its earnings forecasts by 1-4%
for 2017-19, and revised its target prices for the banks it covers as follows:
Name Rating Target Price
-------------------------------------------------
ICBC (01398) Outperform HK$7.0 from HK$6.90
CCB (00939) Outperform HK$8.8 from HK$8.70
ABC (01288) Outperform HK$4.5 from HK$4.40
BOC (03988) Outperform HK$4.9 from HK$4.80
BCOM (03328) Neutral HK$6.1 from HK$6.30
CMB (03968) Neutral HK$28.7 (unchanged)
CITIC (00998) Neutral HK$5.1 from HK$5.20
MSB (01988) Neutral HK$7.4 from HK$7.30
CEB (06818) Neutral HK$3.7 from HK$3.80
PSBC (01658) Neutral HK$4.9 from HK$5.20
CRCB (03618) Outperform HK$6.7 from HK$6.00
BOCQ (01963) Neutral HK$6.8 (unchanged)
(KL)