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<Research>JPM: CN Banks' 1Q Rev. Growth Improves Markedly; NIM Rebound Offers Positive Surprise
Recommend 25 Positive 46 Negative 15 |
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According to a report released by JPMorgan, Chinese banks' results for 1Q26 showed a YoY increase of 7% in revenue growth, compared with the 2% growth in 4Q25, an improvement attributable to a steady recovery in net interest income. To JPMorgan, the biggest surprise was the QoQ rebound in NIM. In contrast, earnings growth improved at a more moderate pace, since banks began rebuilding their provision buffers. Following the results releases, JPMorgan is most bullish on ABC (01288.HK), CCB (00939.HK), BANK OF CHINA (03988.HK), ICBC (01398.HK), and BANK OF NINGBO (002142.SZ) among Chinese banks. On the downside, PSBC (01658.HK) may continue to lag behind large state-owned banks. JPMorgan also expects joint-stock banks as a whole to underperform state-owned banks. CEB BANK (06818.HK), MINSHENG BANK (01988.HK), and HUAXIA BANK (600015.SH) may face greater share price pressure due to earnings contraction in 1Q26. PU DEV BANK (600000.SH) and CM BANK (03968.HK) may deliver unsatisfactory performance in the near term as well. PU DEV BANK saw a significant slowdown in earnings growth, while CM BANK, despite trading at a valuation premium, still lags large state-owned banks in earnings growth. Auto-translated by AI AASTOCKS Financial News |
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