Glonghui, April 1 | Bank of China International released a research report stating that it raised the target price for China Merchants Bank to HK$45.71 and maintained a “buy” investment rating. The company's dividend payout ratio rose 2 percentage points to 35% year on year. CMB's average return on net assets (ROAE) is expected to reach 15.8% this year, the highest in the industry. The bank pointed out that 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. Furthermore, it was also pointed out 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.