---
title: "BofAS Expects MINSHENG BANK  to Face Provision Pressure, Maintains Underperform"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285048757.md"
description: "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."
datetime: "2026-05-04T09:03:58.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285048757.md)
  - [en](https://longbridge.com/en/news/285048757.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285048757.md)
generator: "portal-rs"
---

# BofAS Expects MINSHENG BANK  to Face Provision Pressure, Maintains Underperform

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.)

This article was automatically translated by AI, the Chinese version should be considered the authoritative version. 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.

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**