Strategically important status within the Haitong group. Ongoing reduction of risky assets portfolio. Solid position in the Portuguese investment banking market. Predominantly market-related revenue base. Worse-than-peers asset quality and high single-name concentration. Low visibility on future earnings due to ongoing business model transition. Niche player in highly competitive and global market. S&P Global Ratings' positive outlook on Haitong Bank S.A. reflects the possibility of an upgrade in the next 12 months if we anticipate a less risky operating environment for banks in Portugal. We could also raise the ratings on Haitong Bank if the bank successfully finalizes its business model turnaround and integration with its parent, increases its risk-adjusted capital (RAC) ratio sustainably above 7% while improving its asset quality
