Glonghui, April 2 | Dahua Jixian said that CMB's results last year were generally in line with the quick performance report. Profit for the fourth quarter of last year beat expectations, benefiting from cost control, reduced provisions, and transaction revenue. According to the report, management indicated that it will maintain a dividend payout ratio of 35%, while forecasting positive profit growth in the first quarter of this year will be challenging, affected by pressure on interest spreads and lackluster expense revenue performance. The industry continued to face falling loan interest rates this year, due to a price war due to lack of demand, and a 25 pip reduction in the loan market quoted interest rate (LPR) in February. Management expects net interest spreads to be under high pressure in the first quarter of this year and will bottom out at the end of the year. The impact of last year's policies was fully reflected in the first quarter of this year. The bank raised its profit forecast for CMB this year by 1.5%, but lowered its profit forecast for next year by 2.5%, based on the assumption that credit costs would be lowered and the expected net interest spread bottomed out at a lower level. The bank maintained its “buy” rating on CMB. The target price was raised from HK$43 to HK$44, which is 0.86 times the predicted market account ratio for this year, which is equivalent to half a standard deviation below the historical average.