Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>HSBC Research Expects CN Banks' 2Q NP to Surpass 1Q, but Prefers CN Insurers/ Brokers Over Banks
Recommend 37 Positive 72 Negative 21 |
||||
|
||||
|
HSBC Global Research issued a research report predicting that the 2Q25 net profit growth of Chinese banks covered by the broker would exceed that of 1Q25, driven by lower-than-expected net interest margin compression, stable credit costs and effective cost control. Of which, the net interest margin benefited from deposit repricing and a 5-25 bps reduction in deposit rates in May, partially offsetting the impact of new loan pricing. Fee income is expected to benefit from resilient corporate business and wealth-related income, but banks with higher consumption and credit card exposure may face headwinds. The broker believed that Chinese banks' loan demand will remain weak, and the dilutive effect of capital injections on EPS will become apparent in 3Q25. Southbound funds may continue to support the stock prices of Chinese banks and non-bank financials. However, HSBC Global Research currently preferred Chinese brokers and insurers over Chinese banks, and favored HKEX (00388.HK) and BOC HONG KONG (02388.HK) among Hong Kong financials. AASTOCKS Financial News Website: www.aastocks.com |
||||
Copied to Clipboard
 |
||||
