Quote | Super Quote
Super Quote   |   Detail Quote   |   Interactive Chart   |   Real-Time Chart   |   Transaction   |   Related News   |   Related Securities   |   Company Information   |   Dividend Records   |   Short Sell
01398 ICBC
RTNominal down5.520 -0.030 (-0.541%)
Others

30/12/2019 17:42

{I-bank focus}Banks' pricing capability test seen in Mar-Aug

[ET Net News Agency, 30 December 2019] The PBOC requires banks to convert all existing
loans to LPR (Loan Prime Rate)-based pricing by 31 August 2020.
Morgan Stanley said the ability to renegotiate pricing for all existing non-mortgage
loans means that the recent LPR cuts will not automatically be passed on to all borrowers.
It thinks banks will likely convert a portion of loans to fixed-rate and still balanced
credit supply and demand should support new loan yields, as evident in still stable yields
in recent quarters.
In addition, Morgan expects banks to be more cautious about future LPR submission and to
focus on their total cost base, as each LPR change after August 2020 will affect a much
larger portion of loans.
The research house said the concentrated loan price renegotiations between March and
August 2020 will be a true test of banks' loan pricing capability. It believes that banks
with more market-oriented operations, a higher portion of retail loans, more mature
asset/ability pricing processes and strong core systems with consolidated client data will
do better than peers.
Morgan said China Merchants Bank (03968), Ping An Bank (Shenzhen code: 000001) and
Postal Savings Bank of China (01658) will be less affected, and ICBC (01398) and CCB
(00939) should fare better among state-owned banks due to good IT and data.
Morgan believes loan pricing will be key driving divergence in NIM (net interest
margin), ROE (return on equity), internal capital generation and, hence, future market
share as well. (KL)

Remark: Real time quote last updated: 21/02/2020 17:59
  Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service
A Member of HKET Holdings
Customer Service Hotline:(852) 2880 7004     Customer Service Email:cs@etnet.com.hk
Copyright 2020 ET Net Limited. http://www.etnet.com.hk ET Net Limited, HKEx Information Services Limited, its Holding Companies and/or any Subsidiaries of such holding companies, and Third Party Information Providers endeavour to ensure the availability, completeness, timeliness, accuracy and reliability of the information provided but do not guarantee its availability, completeness, timeliness, accuracy or reliability and accept no liability (whether in tort or contract or otherwise) any loss or damage arising directly or indirectly from any inaccuracies, interruption, incompleteness, delay, omissions, or any decision made or action taken by you or any third party in reliance upon the information provided. The quotes, charts, commentaries and buy/sell ratings on this website should be used as references only with your own discretion. ET Net Limited is not soliciting any subscriber or site visitor to execute any trade. Any trades executed following the commentaries and buy/sell ratings on this website are taken at your own risk for your own account.