China Construction Bank (HKG:0939, SHA:601939) has enough capitalization to safeguard its operations against a volatile environment, S&P Global Ratings said in a Tuesday release.
The rating agency expects the bank to sustain ample capital until 2025 even amid a profitability squeeze, as supported by a rise in its tier-one capital adequacy ratio to 14.92% in H1.
Lower provisions and less capital consumption due to reduced loan growth should support the bank's risk management, S&P said.
The rating agency sees margin constraints to persist due to interest rate cuts and calls from the government to lower banks' lending rates.
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