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| HSI1 | 23,393.32 | 0.00 | -- |
| HSCEI1 | 7,906.11 | 0.00 | -- |
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2026-11-02 17:43:11 Earnings growth of China's large SOE banks accelerated further in 3Q26, which was forecast to support continued outperformance, Morgan Stanley said in a research report. Solid growth in NII, strong investment gains and good cost control drove faster growth in PPOP and earnings among major SOE banks. The broker noted that revenue growth of covered banks accelerated to 9.3% YoY in 3Q, above 4.8% in 2Q. PPOP growth accelerated to 14.1% YoY, while major SOE banks recorded 16.2%. ABC (01288.HK), ICBC (01398.HK) and BANKCOMM (03328.HK) recorded double-digit EPS growth, while CCB (00939.HK) posted about 9% YoY growth. Mid-sized banks continued to diverge due to provisioning factors. BANK OF NINGBO (002142.SZ) and BANK OF HANGZHOU (600926.SH) reported 3Q earnings growth of 12% and 9.5% YoY respectively, while MINSHENG BANK (01988.HK), CEB BANK (06818.HK) and HUAXIA BANK (600015.SH) saw earnings decline in range between 33% and 17% YoY due to rising credit costs. The broker projected continued household deleveraging over the coming quarters, which should help reduce credit risk in the long run and remain manageable for major SOE banks and the broader banking sector. The broker rated China's financial sector as Attractive. ~ AASTOCKS Financial News Website: www.aastocks.com | |