Glonghui, March 26 | Bank of China International released a report raising the target price for China Merchants Bank's H shares to HK$45.71 and maintaining a “buy” investment rating. The bank indicated that CMB's dividend payout ratio increased by 2 percentage points to 35% year-on-year. It is expected that CMB's average return on net assets (ROAE) this year will reach 15.8%, the highest among its peers. According to the bank, CMB's results last year showed a steady increase in profits in the fourth quarter of last year, and asset quality was still excellent, based on the fact that its non-performing loan ratio reached 0.95% by the end of last year, or is still at the low end of the same industry. The bank also indicated that CMB's net interest spread last year was 2.15%, down 4 basis points from the first three quarters of last year, and 25 basis points year-on-year, mainly affected by falling returns on interest-bearing assets and rising financing costs. The bank expects CMB's net interest spread to fall further by 11 basis points this year.