0423 GMT - Ping An Bank's margin pressures are expected to persist due to loan book derisking and likely further monetary easing measures by China's central bank, CGS International's Michael Chang and Laura Li say in a note. The analysts project the lender's 2025 net interest margin to fall 17 bps. Ping An Bank's conservative risk appetite should lead to improving asset quality but drive a likely lower loan growth target, they say. CGS thinks there is scope for the bank to raise its dividend payout ratio over 2024-2026, which should help limit share-price downside despite potential loan growth weakness. The brokerage maintains its add rating and CNY17.70 target on the stock, as it thinks Ping An Bank would be a beneficiary to any rebound in Chinese consumer sentiment. Shares are last at CNY11.67. (hoishan.chan@wsj.com)
(END) Dow Jones Newswires
December 05, 2024 23:23 ET (04:23 GMT)
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