China Minsheng Bank (1988.HK/600016.SS, Not Covered): Asia Financials Corporate Day Takeaways

研报英文原文证据摘录

China Minsheng Bank (1988.HK/600016.SS, Not Covered): Asia Financials Corporate Day Takeaways

Goldman Sachs

n Stable fee income growth is provided by a high proportion of recurring fee income

from settlement, custody, and wealth management services. Capital market activity

has positively impacted custody and wealth-related fees.

n Wealth management is a key growth engine in 2026. High-net-worth client AUM and

count are both growing at ~20%, with affluent-tier clients also seeing double-digit

growth, providing a robust base for future income.

n Bancassurance: Regarding new fee disclosure regulations, the bank believes channel

fees will not improve unless insurance companies reduce their reliance on banks.

5. Investment Income

n FICC: Q1 2026 performance exceeded expectations due to successful market timing.

However, the bank is conservatively managing the realization of gains to avoid

negatively impacting NIM.

n Equity: The ~Rmb 20bn equity portfolio is marked-to-market. Significant unrealized

gains in 2025 create a high base, meaning even a slow bull market in 2026 will result

in a much slower contribution to revenue growth.

n Investment strategy is to meet liquidity needs, with a core allocation to high-liquidity

government bonds, then to cooperate with local governments via bond allocations

and underwriting.

n The bank intends for bond investment growth to lag loan growth to increase the

loan-to-asset ratio. It also plans to reduce the proportion of assets at AC account

and increase assets at OCI account to enhance flexibility for future sales and

adjustments. The trading account (FVTPL) is relatively small at ~Rmb 300bn.

6. Asset Quality

n Overall Outlook: NPL formation and provision charges are both expected to increase

slightly year-on-year in 2026.