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| HSI1 | 23,393.32 | 0.00 | -- |
| HSCEI1 | 7,906.11 | 0.00 | -- |
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2026-11-02 17:52:30 Major Chinese SOE banks delivered solid 3Q results beat, JPMorgan said in a research report. Revenue, PPOP and net profit rose 9%, 16% and 9% YoY respectively, topping the broker's forecasts by 0%, 3% and 4%. ABC (01288.HK) recorded the fastest revenue and net profit growth, although the market may have partly anticipated this. PSBC (01658.HK) posted the weakest revenue and net profit growth, while its special mention loan ratio grew by 15 bps QoQ and its NPL provision coverage ratio fell by 10 ppts QoQ. BANK OF CHINA (03988.HK) logged slower net profit growth than the other Big Four banks, potentially signaling a brief slowdown in its relative outperformance among major SOE banks. Based on 3Q results, the ranking from strongest to weakest performance was ICBC (01398.HK) > CCB (00939.HK) > ABC > BANKCOMM (03328.HK) > BANK OF CHINA > PSBC, according to the broker. However, BANK OF CHINA's overseas business remained strong and should support better growth momentum than peers through 2027. From a 12-month perspective, the broker's preference order is ICBC > CCB > BANK OF CHINA > ABC > BANKCOMM > PSBC. Strong 3Q results should support near-term share price outperformance for major SOE banks, although ICBC warned that revenue growth in 2027 may face headwinds. JPMorgan believed this could also apply to the broader sector, and a reversal in fund flows may trigger profit-taking. JPMorgan expected 4Q earnings to remain resilient, although the outlook through 2027 is more mixed. ABC and ICBC expected NIM to remain broadly stable in 2026, while PSBC remains cautious on a meaningful recovery. ICBC forecast moderate pressure on NIM narrowing in 2027. Management teams generally estimated overall asset quality to remain broadly stable, although BANK OF CHINA and BANKCOMM still see pressure in retail loans. ICBC warned that revenue growth in 2027 may face greater challenges due to moderate pressure on NIM and a high base for non-interest income. ~ AASTOCKS Financial News Website: www.aastocks.com | |