CCB International: The latest ratings and target prices (table) for domestic banks continue to prefer state-owned banks

The Zhitong Finance App learned that CCB International published a report saying that it is re-evaluating domestic bank stock valuations under high market sentiment driven by stimulus policies. The bank said that thanks to higher transaction revenue and lower impairment losses, mainland banks will hand over stable operating performance in the third quarter of 2024.

The bank predicts that the profit growth of Industrial Bank (601166.SH) will reach the highest 3%, followed by Agricultural Bank (01288), Bank of Communications (03328), and China CITIC Bank (00998). Furthermore, the bank believes that net interest spreads for the third quarter will drop 15 basis points to 151 basis points year over year. The bank said it continues to prefer state-owned banks, particularly Agricultural Bank and Bank of China (03988).