China Merchants Bank Shares Fall After First-Quarter Results
By Yifan Wang
China Merchants Bank Co. shares fell in Hong Kong trading Thursday after the lender reported lower quarterly operating income.
The stock was recently 5.7% lower at 37.30 Hong Kong dollars (US$4.75).
China Merchants Bank late Wednesday posted a 1.5% decline in first-quarter operating income, the key top-line metric for lenders. Net interest income, its main source of revenue, rose by 1.7%, missing analysts' estimates for a 4.3% increase, according to a Visible Alpha poll.
Citi analysts said in a note that the income decline was in part a result of net-interest-margin pressure, likely due to cheaper mortgage loans made during the period, after China officials cut mortgage rates in a bid to shore up the country's struggling real-estate market.
Citi also identified weak fee income as one of the key negatives for the quarter. "Weakness [was] observed across wealth management, settlement and clearing, custodial, bank card fees, given customer risk appetite was low and investment sentiment remained weak," the analysts said.
Write to Yifan Wang at yifan.wang@wsj.com
(END) Dow Jones Newswires
April 26, 2023 23:20 ET (03:20 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
5 Things We Learned From the Q1 Earnings Season
-
After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
What’s Happening In the Markets This Week
-
Can the Fed Declare Victory on Inflation?
-
After Earnings and a 56% Rally In 2024, Is Arm Stock a Buy, a Sell, or Fairly Valued?
-
How Morningstar Rates Stocks
-
After Earnings, Is Disney Stock a Buy, a Sell, or Fairly Valued?
-
Home Depot Earnings: Macro Factors Pinch Demand, but Long-Term Outlook Intact
-
Tariffs On Chinese EVs Offer US Automakers a Chance to Capture Demand
-
The Best REITs to Buy
-
3 Hot Stocks to Buy That Still Look Undervalued
-
After Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?