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<Research> BofAS Lowers Postal Savings Bank of China (01658.HK) TP to HKD4.65, Rating 'Underperform'
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BofAS issued a report indicating that Postal Savings Bank of China (01658.HK) reported core net profit for the fourth quarter of last year that was below expectations, with the net interest margin declining by 3 basis points QoQ to 1.62%, and net interest income decreasing by 0.5% QoQ. The firm believes that Postal Savings Bank of China faces challenges such as weak retail loan demand, asset quality pressure, and an unattractive dividend yield compared to its state-owned banking peers. The report noted that last year, the bank's net fee income grew by 16.1% YoY, driven mainly by strong growth in wealth management and investment banking fees, which increased by 36% and 39% YoY, respectively. The bank's non-performing loan ratio rose by 5 basis points YoY to 0.95%, with mortgage and personal micro-loan non-performing rates rising to 0.69% and 2.44%, respectively. Based on its outlook, BofAS lowered the target price for Postal Savings Bank of China H-shares from HKD4.85 to HKD4.65, assigning an 'Underperform' rating. The firm also lowered the target price for Postal Savings Bank of China (601658.SH) A-shares from RMB5.62 to RMB5.19, with an 'Equalweight' rating. The firm forecasts the bank's EPS for 2026 and 2027 to be RMB0.70 and RMB0.73, respectively. (da/w) Auto-translated by third-party software This translation was auto-generated by third-party software. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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