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China Merchants Bank Could Improve Shareholder Returns -- Market Talk

Dow Jones01-16

0714 GMT - China Merchants Bank could provide higher shareholder returns this year, analysts at UOB Kay Hian write in a note. Preliminary 2024 earnings show that its book value per share grew strongly on-year, pointing to a significant boost in its capital ratio and signaling potential upside to its dividend policy, they write. The bank has demonstrated improving operating performance and balance sheet expansion, with growth seen in total assets and retail loans, they note. UOB Kay Hian expects China Merchants Bank's loan growth to improve this year, driven by increasing retail loans, while fee income could rebound further due to recovering capital market activity. UOB Kay Hian retains a buy rating for the stock, with a target price of HK$49.00. China Merchants Bank's shares are 1.1% higher at HK$41.65. (kimberley.kao@wsj.com)

 

(END) Dow Jones Newswires

January 16, 2025 02:14 ET (07:14 GMT)

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