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<Research>Citi Expects CN Banks to Report 3.1% Growth in 1Q Earnings; Top Picks BANK OF CHINA/ CCB/ CQRC BANK
Recommend 46 Positive 68 Negative 37 |
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Citi has issued a report expecting the Chinese banks under its coverage to see a 6.3% YoY increase in their 1Q26 revenue, compared to the 3% and 1.5% growth in 4Q25 and 2025, respectively. The broker attributed this achievement to steady credit growth driven by government-related lending in China, easing NIM pressure, strong fee income growth stimulated by wealth management businesses, and a lower base of trading gains compared with the same period last year. Given that Chinese banks may use their solid revenue growth to increase provisions, leading to earnings growth lagging revenue growth, Citi envisioned a YoY growth of 3.1% in 1Q26 earnings, with large Chinese banks and regional banks likely to outpace joint-stock banks, owing to their better loan growth and NIM trends. Citi expects better performance from large Chinese banks like ABC (01288.HK), CCB (00939.HK), and BANK OF CHINA (03988.HK). Banks that could deliver disappointing 1Q26 results include CM BANK (03968.HK), MINSHENG BANK (01988.HK), and CEB BANK (06818.HK). The broker's top picks for Chinese banks are BANK OF CHINA, CCB, and CQRC BANK (03618.HK). Auto-translated by AI AASTOCKS Financial News |
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