[ET Net News Agency, 7 November 2019] Morgan Stanley raised its target price for China
Merchants Bank (CMB)(03968) to HK$50.2 from HK$46.4 and maintained its "overweight"
rating.
The research house hosted a group investor meeting with CMB last week. The bank noted
three key factors that could pressure NIM in 3Q: (1) fading momentum in 3Q following
front-loading of higher yield retail loan in 1Q; (2) an intended slowdown in retail
lending and a loan mix shift to some low-risk infrastructure credit; and (3) growth in
some higher-cost retail deposits to retain clients converting back from wealth management
products.
Despite potential NIM pressure, Morgan expects CMB to deliver 15% CAGR in earnings in
2019-21 and 17% ROE, and the restructuring underway could help fuel future growth. (KL)
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03968 CM BANK
Nominal 
33.050 0.000 (0.000%) Research Report
07/11/2019 17:34
{I-bank focus}Morgan raises CM Bank (03968) to HK$50.2
| Remark: | Real time quote last updated: 25/04/2024 08:46 |
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