Goldman Sachs issued a research report indicating that the fourth-quarter results of four major state-owned Chinese banks, including Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), Bank of Communications (BANKCOMM), and Postal Savings Bank of China, were in line with its expectations. Average revenue and profit each increased by 2% year-on-year. Although loan growth slowed, net interest income remained flat compared to the previous year, supported by a quarter-on-quarter stabilization in net interest margins. Non-interest income also exceeded expectations. However, provisions increased, the non-performing loan formation rate rose, and the non-performing loan coverage ratio continued to decline. Pressure on retail asset quality persists, with rapid growth in non-mortgage retail loans posing a potential risk. Goldman Sachs made minor adjustments to its profit forecasts for ICBC, CCB, and BANKCOMM and slightly lowered valuations for some A-shares to reflect the narrowing A-H share premium. As a result, the target price for ICBC's A-shares was raised by 2% to 7.71 yuan, and for its H-shares by 8% to 6.27 Hong Kong dollars, with a "Neutral" rating. The target price for CCB's A-shares was raised by 4% to 11.41 yuan, and for its H-shares by 9% to 9.01 Hong Kong dollars, with a "Buy" rating. The target price for BANKCOMM's A-shares was lowered by 3% to 5.90 yuan, while its H-share target was raised by 6% to 6.11 Hong Kong dollars, both maintaining a "Sell" rating.
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