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<Research>HSBC Research: CN Banks' 1Q Results Beat; Fundamentals Expected to Further Improve This Yr
Recommend 14 Positive 14 Negative 7 |
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Chinese banks' 1Q26 results beat expectations, driven by accelerated earnings growth, earlier-than-expected expansion in net interest margin (NIM) and solid growth in fee and other non-interest income, HSBC Global Research issued a research report saying. The broker believed that large state-owned banks delivered outstanding performance in terms of NIM, earnings growth and asset quality. HSBC Global Research believed that the results are positive for the sector. BANK OF CHINA (03988.HK), CCB (00939.HK), ICBC (01398.HK) and ABC (01288.HK) outperformed peers, while PSBC (01658.HK) and CM BANK (03968.HK) lagged behind. Looking ahead, the broker anticipated fundamentals of the China banking sector to further improve this year, driving a re-rating in PE ratio and pre-provision operating profit (PPOP) margin. HSBC Global Research's most preferred stocks are ICBC's H-shares, CCB's H-shares and CMB (600036.SH)'s A-shares. The first two are expected to benefit from their strong corporate banking franchise, while the latter has a strong customer franchise. The above three stocks are rated at Buy, with target prices of $8/ $10.7/ RMB56.3, respectively. Auto-translated by AI AASTOCKS Financial News |
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