BofAS Expects MINSHENG BANK to Face Provision Pressure, Maintains Underperform
I'm LongbridgeAI, I can summarize articles.BofAS has maintained an Underperform rating for MINSHENG BANKdue to expected provision pressure. The bank reported a 6.4% YoY increase in pre-provision profit for Q1, but net profit fell 9.6% YoY, largely due to a 26% YoY rise in provision expenses. Management anticipates moderate growth in total provisions this year, with Q1 provisions expected to exceed 20% of the full-year total by 2025. The CET1 ratio declined to 9.35%, and ROE fell to 8.1%. The H-share target price is set at HKD3.6.
BofAS said in a research report that MINSHENG BANK (01988.HK) +0.040 (+1.124%) Short selling $3.13M; Ratio 9.030% recorded a 6.4% YoY increase in pre-provision profit in the first quarter, but net profit fell 9.6% YoY, mainly due to a 26% YoY surge in total provision expenses on a low base. Management guided that total provisions will grow moderately this year, with a more even quarterly allocation, and expects the first-quarter provisions to account for a proportion of the full-year total higher than the 20% level in 2025.
As of the end of the first quarter, the core tier-1 capital adequacy ratio (CET1) declined 3 bps QoQ to 9.35%, while return on equity (ROE) fell 1.1 ppts YoY to 8.1%. In view of the provision pressure, the broker maintained an Underperform rating with an H-share TP of HKD3.6. (ss/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-04 16:25.)
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