China Bank Profit on the Way to Contraction

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Equity Bottom-Up

China Minsheng Banking H / Equity Bottom-Up

With a 14% and 3.5% year-on-year growth in revenue and net profit, respectively, China Minsheng Bank’s, 2015 results were roughly in line with our expectations.Net interest margin pressure remained challenging as the bank saw the largest among our Chinese banks coverage decline at 33 basis points in 2015. The past quarter's results reflected the painful transformation as the bank is reducing its exposure to higher risk small and micro business loans.Analyst: Iris Tan

With a 14% and 3.5% year-on-year growth in revenue and net profit, respectively, China Minsheng Bank’s, 2015 results were roughly in line with our expectations.Net interest margin pressure remained challenging as the bank saw the largest among our Chinese banks coverage decline at 33 basis points in 2015. The past quarter's results reflected the painful transformation as the bank is reducing its exposure to higher risk small and micro business loans.Analyst: Iris Tan

Pressure in Credit Quality and Net Interest Margin Remained Challenging for CMBC