[ET Net News Agency, 19 April 2018] Credit Suisse assumed coverage on China Merchants
Bank (CMB)(03968) with a "neutral" rating, and a target price of HK$33.5 (from HK$35).
The research house revised down its FY2018-19 by 2-4%. It noted that CMB has a leading
consumer banking franchise and strong core profitability that should stand out the most
amid an improving asset quality cycle.
With the target to grow loan book by 10%, a stabilised NIM and a possible fee income
improvement, CMB should see an accelerating sales growth in 2018. However, Credit Suisse
does not expect this to translate into better PPoP growth with the bank entering into a
new investment phase with a higher CIR. It believes top-line growth in the next 1-2 years
is likely to be held back a bit by rising funding cost and scale back in non-loan
(non-standard) assets. (KL)
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03968 CM BANK
Nominal 
34.100 +1.050 (+3.177%) Others
19/04/2018 16:38
[I-bank focus]CS restarts CM Bank (03968) at HK$33.5
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