The Zhitong Finance App learned that Goldman Sachs released a research report stating that it gave Daxin Bank (02356) a “neutral” rating, and the target price dropped 5.6% from HK$7.1 to HK$6.7. The company's credit quality for the first half of 2023 was higher than the bank's expectations, and the credit cost was 23 basis points. The bank expects its credit costs to remain high in the second half of the year, and will slow somewhat from fiscal year 2024.

According to the report, Dah Sing Bank's profit per share for the first half of 2023 was HK$0.79, 6% higher than the bank's expectations; operating profit was in line with the bank's expectations; operating income fell short of expectations, but provision expenses exceeded expectations, so it was offset. Daxin Bank's revenue increased 2% year over year, and net interest income (NII) increased 12% year over year, but was 5% lower than the bank's expectations. As net interest spreads fell short of expectations, Goldman Sachs lowered their earnings estimates for 2023-2026 by 7%, 3%, 4% and 2% per share.