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| HSI1 | 24,186.83 | +124.11 | 178.21B |
| HSCEI1 | 8,128.25 | +24.98 | 60.40B |
| Back Zoom + Zoom - Block Traded | |
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2026-10-15 12:15:42 Citi issued a report expecting faster revenue and profit growth for the top five Chinese banks in 3Q26. The bank expects the YoY revenue growth of the Chinese bank stocks under its coverage to accelerate to 8.8% in 3Q26 (versus 7.5% in 2Q26), mainly driven by: i) resilient loan growth despite a slight slowdown from 2Q26; ii) stable NIM on a QoQ basis; and iii) decent non-interest income performance amid a low base for trading gains in 3Q25, although YoY fee income growth remained weak. Asset quality likely remained stable in 3Q26, as improvements in corporate non-performing loans offset pressure from retail loan non-performing loans. Banks with strong revenue growth continued to make higher provisions as a precautionary measure, resulting in profit growth (expected to rise 5.5% YoY in 3Q26 versus 3.3% YoY in 2Q26) lagging revenue growth. Large banks and regional banks continued to outperform joint-stock banks in 3Q26, mainly due to stronger corporate loan growth and fair value gains from equity holdings in CXMT (688825.SH) held by the top five banks. Citi expects ABC (01288.HK), BANKCOMM (03328.HK) and CQRC BANK (03618.HK) to deliver better-than-expected results, while PSBC (01658.HK), BANK OF CHINA (03988.HK) and PING AN BANK (000001.SZ) may post weaker-than-expected results. For top picks, the bank recommends CCB (00939.HK) and ABC among H shares, and BANKCOMM (601328.SH) and PU DEV BANK (600000.SH) among A shares. (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |