Nomura anticipated that the earnings growth of the Chinese banks under its coverage will moderate in 2Q22, decelerating from 8.7% in 1Q22 to 7.4%, due to NIM pressure, prudent provisioning and weaker fee income growth amid macro headwinds. Given their strong retail franchises and sufficient coverage buffer, CM BANK (03968.HK) and PSBC (01658.HK) was selected as the sector top picks.
ICBC (01398.HK), CCB (00939.HK) and ABC (01288.HK) were estimated to deliver stable earnings growth of 4.7-6.5% on a YoY basis. The earnings of CM BANK, PSBC and PING AN BANK (000001.SZ), meanwhile, were projected to rise by 11.6%, 15.8% and 18.5%, YoY, respectively.
ICBC (01398.HK), CCB (00939.HK) and ABC (01288.HK) were estimated to deliver stable earnings growth of 4.7-6.5% on a YoY basis. The earnings of CM BANK, PSBC and PING AN BANK (000001.SZ), meanwhile, were projected to rise by 11.6%, 15.8% and 18.5%, YoY, respectively.