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<Research>Citi Bullish on Major CN Banks; Top Picks ICBC/ CCB/ BANK OF CHINA
Recommend 28 Positive 53 Negative 17 |
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Citi said in its research report that the Chinese banks under its coverage delivered roughly in-line results for 3Q25. Due to weak trading income, their 3Q25 pre-provision profit fell by 0.5% YoY, compared to a 5% increase in 2Q25, even though it was offset by easing NIM pressure and improved fee income. Specifically, BANK OF CHINA (03988.HK) exceeded market expectations on the strength of improvements in NIMs and trading income, while MINSHENG BANK (01988.HK), CEB BANK (06818.HK), and BANK OF CHENGDU (601838.SH) fell short of expectations. Looking ahead to 4Q25 and 1Q26, Citi expects BANK OF CHINA to outperform the market on increased insurance fund purchases and potential capital rotation into banks. The broker also expressed its favor for major Chinese banks, particularly ICBC (01398.HK), CCB (00939.HK), and BANK OF CHINA, as their earnings growth for 1-3Q25 has turned positive, and their 3Q25 earnings growth often outperforms other large banks, reinforcing the dividend yield theme of Chinese bank stocks. Citi's top picks are ICBC, CCB, and BANK OF CHINA, considering their high dividend yields and attractive valuations. Citi's ratings and target prices for Chinese banks are available in a separate table. AAStocks Financial News |
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