[ET Net News Agency, 10 December 2020] Nomura lifted its target price for ICBC (01398)
to HK$6.15 from HK$5.84 and maintained its "buy" rating.
The research house increased net interest margin (NIM) forecasts for FY2020/21/22 by
4/11/16bp to reflect an improving operating environment, including stabilizing lending
rates of bank loans, given the impressive economic recovery and less stimulus and policy
easing going forward.
Nomura now forecast ICBC to record 2.09%/2.07%/2.06% of NIM for FY2020/21/22. Its NIM
decline narrowed to 3bp QoQ in 3Q versus 7bp in 2Q, indicating its gradual recovery from
the COVID-19 pandemic. Management has guided that it would make efforts to decrease the
cost of liability by enhancing customer loyalty in the long term. (KL)