MINSHENG BANK (01988) dropped nearly 5% in morning trading. As of press time, the stock was down 4.72% at HK$3.03, with a turnover of HK$94.60 million.
On the news front, MINSHENG BANK released its earnings results. For the first three quarters, the company recorded operating revenue of RMB 110.554 billion, a slight year-on-year increase of 1.88%; net profit attributable to shareholders was RMB 24.323 billion, down 14.78% year-on-year.
Looking at the third quarter alone, revenue was RMB 35.388 billion, down 2.04% year-on-year, while net profit attributable to shareholders was only RMB 4.786 billion, a sharp decline of 33.18% year-on-year and a 40% drop quarter-on-quarter.
CICC stated that MINSHENG BANK's third-quarter profit fell short of expectations, mainly due to the company's cautious recognition and increased efforts in disposing of non-performing assets. The institution believes that the company's proactive and prudent recognition of non-performing risks will help improve the safety of its financial statements in the medium to long term, and suggests paying attention to the trend and potential inflection point of the subsequent net non-performing formation rate.
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