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<Research>UBS: CN Banks' 1Q Fundamentals Still Weak; NIM Stabilizing
Recommend 41 Positive 80 Negative 41 |
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The fundamentals of Chinese banks remain weak in 1Q24, with most state-owned banks and CM BANK (03968.HK) reporting a 1-3% YoY decline in earnings, while other banks reporting slower earnings growth, which is probably not a surprise to the market, although it is a negative news, UBS issued a research report saying. Considering the unfavorable factors in fee income and declining net interest margin (NIM), revenue and PPOP growth were still negative for most banks. UBS still expected most banks to return to positive earnings growth in FY2024 with lower base in the coming quarters. On the positive side, the sequential decline in NIM has narrowed significantly, and became better than expected. CET-1 ratio improved for most banks as new capital rules implemented. BANKCOMM (03328.HK) and ABC (01288.HK) outperformed among state-owned banks, CITIC BANK (00998.HK) outshone among joint-stock banks, and CHANGSHU BANK (601128.SH) outpaced other regional banks, according to UBS. AAStocks Financial News |
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