Daiwa: Upgraded Everbright Bank (6818.HK) to outperform target price lowered to HK $3.45

2022-06-15 0 By

Daiwa issued a report, based on the 2021 preliminary results of Everbright Bank (6818.HK), the bank’s performance last year and this year’s outlook made the latest forecast.Daiwa expects Mitsuko’s net interest income to rise 2.9 percent year-on-year last year, mainly due to steady 9.9 percent growth in interest-bearing assets, but net interest margin may fall 14 basis points year-on-year to 2.15 percent in the face of industry challenges.As for total loan growth, estimated at 10.5 per cent a year, it should be higher than the average for joint-stock banks.Looking ahead to this year, the bank’s fee income is expected to grow steadily, supported by wealth management related businesses.Daiwa said everbright performed well compared to its peers last year and upgraded its rating to “outperform” from “hold,” but cut its target price to HK $3.45 from HK $3.70 and trimmed its 2021 to 2022 forecast.