Goldman Raises Target Price On China Merchants Bank After Solid Second-Quarter Results

Goldman Sachs said China Merchants Bank's second-quarter results were solid, with pre-provision operating profit and net profit both beating its estimates, driven by stronger-than-expected fee income and investment gains. The bank said weak retail loan demand was offset by corporate lending, which supported overall credit growth and kept core earnings resilient. Goldman also said investors will continue to focus on retail asset quality and provision coverage, while noting that China Merchants Bank's 14.1% CET1 ratio, ongoing capital accumulation and steady balance-sheet growth should support shareholder returns over time, according to ETNet. Goldman raised its 2026-2028 operating profit forecasts for China Merchants Bank by an average of 2.6% and kept its buy rating on the lender's A shares and H shares. It lifted the H-share target price to HK$59.28 from HK$52.49 and the A-share target price to RMB55.24 from RMB53.81.