UBS: MINSHENG BANK 1Q26 Net Profit Dragged by Surge in Provisions, Rating Buy
I'm LongbridgeAI, I can summarize articles.UBS reported that MINSHENG BANKexperienced a 9.6% YoY decline in net profit after tax for 1Q26, the lowest among its peers, primarily due to increased provision expenses. Despite this, revenue and pre-provision operating profit met expectations. The bank has delayed its forecast for a return to positive net profit growth until 2027 but maintains a Buy rating with a target price of HKD4.6.
UBS issued a research report stating that MINSHENG BANK (01988.HK) +0.040 (+1.124%) Short selling $886.10K; Ratio 4.048% recorded a significant YoY decline of 9.6% in net profit after tax for 1Q26, the weakest among its peers. However, revenue and pre-provision operating profit growth in 1Q26 were broadly in line with expectations. The earnings miss was mainly due to a notable rebound in provision expenses during the quarter.
The bank has postponed its forecast for MINSHENG BANK to return to positive full-year net profit after tax growth to 2027. It maintained a Buy rating with an H-share TP of HKD4.6. (hc/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-04 12:25.)
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