＜Research＞CICC Expects Listed CN Banks to Track 0 Growth YoY in 2Q NP; NIM Fall Smaller

　　CICC, in its research report, expected that the income of listed China banks in 2Q24 will sink 2% YoY, and net profit will hike 0% YoY, which is still relatively stable. This is majorly attributable to measures such as banning manual interest rate adjustments and controlling the cost of deposits, which improve the cost of liabilities, in CICC view.

　　The broker said that it will continue to pay heed to the stability of credit demand and NIMs in the future. The pressure on asset quality may be partially reflected in the NIMs. Overall, the stability of corporate business may still be better than that of retail.

　　Related NewsCICC Ratings, TPs on Some HK-listed Banks (Table)

　　CICC attributed the smaller decline in interest rate spreads to the lower deposit costs. It expected that the NIMs of listed banks will narrow by 2 bps QoQ in 2Q24, and the corresponding interest rate spread will fall by 19 bps YoY, a decline that is narrower than the 25 bps decline in 1Q24.

　　CICC's TP for CQRC BANK (03618.HK) -0.010 (-0.249%) Short selling $1.27M; Ratio 17.341% was $4.43; CM BANK (03968.HK) -0.400 (-1.242%) Short selling $40.02M; Ratio 32.622% was $35.35; CCB (00939.HK) -0.040 (-0.733%) Short selling $168.37M; Ratio 26.321% , ABC (01288. HK), BANKCOMM (03328.HK) -0.070 (-1.224%) Short selling $11.20M; Ratio 40.685% , ICBC (01398.HK) -0.050 (-1.142%) Short selling $174.88M; Ratio 38.391% were $6.77, $4.4, $6.14, $5.52 respectively, and BANK OF CHINA (03988.HK) -0.010 (-0.291%) Short selling $217.23M; Ratio 45.467% was $3.9. Each of these stocks were rated Outperform.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-30 12:25.)

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