ZHITONG AH Statistics | July 17

AH Statistics | July 17

Zhitong FinanceJul 17 16:15

JPMorgan: Second-quarter revenue and profit growth of China’s five largest state-owned banks expected to outperform the industry average.

JPMorgan has released a preview report on Chinese banks’ second-quarter results, expecting listed Chinese banks to begin announcing their Q2 2026 earnings in late August. The bank forecasts that large state-owned banks will see year-over-year revenue growth of approximately 6% and profit growth of around 3%, outperforming joint-stock commercial banks, whose revenue and profits are both expected to grow by about 1% year-over-year. At the individual stock level, ahead of earnings releases, the bank is positive on Agricultural Bank of China (01288.HK), Bank of China (03988.HK), ICBC (01398.HK), China Construction Bank (00939.HK), and Bank of Communications (03328.HK).

AASTOCKSJul 17 11:30

Falling behind by not offering tokens? Computing power-based customer acquisition models are intensifying competition among mid-sized and small banks, with asset enhancement emerging as the new battleground.

① Numerous small and medium-sized banks and private banks, which lack the necessary qualifications to issue credit cards, find it difficult to replicate credit card-based customer acquisition strategies and have instead turned to offering AI token computing power entitlements as an incentive mechanism to boost asset accumulation. ② The shift by small and medium-sized banks from credit card-linked token entitlements to asset accumulation represents both a reactive move amid intensifying competition for existing customers and an attempt to achieve differentiated market positioning.

cls.cnJul 16 17:24

ZHITONG AH Statistics | July 16

AH Statistics | July 16

Zhitong FinanceJul 16 16:15

Multiple banks have recently launched new credit card offerings with diverse features, including computing-power-themed cards and overseas financial services, with mid-to-high-end customer segments remaining a key focus for acquisition.

① Although the era of prioritizing scale has ended, credit card businesses still hold unique value in retail finance. As a business model characterized by 'front-loaded risk,' banks can continue to acquire high-value customers through appropriately set eligibility thresholds. ② High-value retail customer segments—such as IT engineers and individuals pursuing overseas education—will inevitably remain the primary focus for major banks’ credit card business expansion.

cls.cnJul 15 19:43

Goldman Sachs: Divergence among Chinese bank stocks to accelerate in the second half; large banks remain preferred

Goldman Sachs published a research report noting that China's banking sector continues to face growth challenges due to slowing credit expansion. However, it expects stock performance to remain divergent in the second half of the year, primarily driven by balance sheet resilience. Large banks remain its top preference, with a favorable view on China Construction Bank (0939.HK) and Bank of China (3988.HK). The firm maintains its 'Buy' rating on China Merchants Bank (3968.HK) but has lowered its net profit forecasts for 2026 and 2027 by 2% each, citing concerns over whether asset quality can improve. Goldman Sachs forecasts that, on average, the banks under its coverage will report year-over-year growth of 5% in pre-provision operating profit and 3% in net profit for the second quarter, with large banks continuing to

AASTOCKSJul 15 12:47