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<Research> Citi: CM BANK (03968.HK) 1Q26 Results Disappoint; Net Profit Growth May Lag Six Major State-owned Banks
Recommend 8 Positive 18 Negative 12 |
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Citi said in a report that CM BANK (03968.HK)'s 1Q26 results disappointed, affected by weak loan growth, NIM pressure and subdued trading income. The bank expects the market to react negatively to CM BANK's weaker-than-expected 1Q26 net profit growth of only 1.5% YoY, with growth potentially lagging the six major state-owned banks. Retail asset quality continued to deteriorate in 1Q26. Retail loans fell 1% QoQ and rose only 0.7% YoY, reflecting ongoing household deleveraging. The retail non-performing loan ratio increased 6 bps QoQ to 1.14%. Among them, the non-performing loan ratios for credit cards, consumer loans and mortgages rose 16 bps, 15 bps and 7 bps QoQ, respectively. Citi noted that although household assets accelerated their shift into the A-share market in 1Q26, the positive impact on CM BANK's fee income appeared weaker than expected, indicating weaker monetization capability. This may be due to fee rate cuts and a shift in product mix toward lower-fee products. The broker maintained its Buy rating on CM BANK's H-shares with a TP of HKD59.06. (fc/da) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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