Bank of Shanghai (601229 CH): Buy: Stabilised NIM and higher dividend payout with better revenue mix

研报英文原文证据摘录

Bank of Shanghai (601229 CH): Buy: Stabilised NIM and higher dividend payout with better revenue mix

oducts; and (4) CET-1 capital is replenished on the

successful conversion of its convertible bonds. 52-WEEK PRICE (CNY)

Net interest income likely the main revenue growth driver this year, resulting in 12.00

better mix. We expect the bank’s pension agency business to further reduce its liability 10.15

costs, which may help stabilise its NIM. Given increased loan issuance this year, we 8.30

forecast: (1) a 1.6% y-o-y increase in 2026 net interest income; (2) a wider y-o-y decline 07/25 01/26 07/26

of 15% in 2026 fees and commissions, on volatile wealth management market; and (3) Target price: 10.90 High: 11.23 Low: 8.68 Current: 9.07

an 8% y-o-y growth in other non-interest income, thanks to the bank’s profit-taking by Source: LSEG IBES, HSBC Qianhai Securities estimates

timing the market. Overall, we estimate the bank's 2026 revenue/net profit to grow

2.5%/0.9% y-o-y, assuming no more risky assets are written off and stable provisioning. Angel Sun* (Reg. No. S1700519080001)

Head of A-share Financials Research

HSBC Qianhai Securities Limited

We lower our 2026-27 net profit estimates by 1.8-3.2%, as we: (1) adjust our 2026 angel.y.sun@hsbcqh.com.cn

and 2027 net interest income estimates by +0.9% and -0.9%, respectively, given the +86 21 5066 2015

fast decline in asset yields due to intense competition in regions where the bank

operates, and the decline in liability costs may come to an end this year; (2) lower our * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

2026 and 2027 other non-interest income estimates by 2.7% and 1.8%, respectively, to