Citibank: Bank of China expects revenue growth of 6.8% year-on-year in the second quarter, optimistic about large banks and regional banks

The Zhitong Finance App learned that Citibank's revenue growth for the second quarter of 2026 is expected to remain resilient, with a 6.8% year-on-year increase, which is expected to slow down from 7.4% in the first quarter of 2026, mainly affected by the high base of transaction earnings. Revenue growth for the next quarter was mainly supported by the following factors, including the year-on-year increase in corporate loans, which was still steady, although slightly slower than in the first quarter; net interest spreads stabilized quarterly; fee revenue increased strongly.

The bank expects that the asset quality of the Bank of China will remain stable in the second quarter of 2026, but the Bank of China will use strong revenue growth to make more provisions to prepare for unforeseen needs. As a result, profit is expected to increase 2.9% year over year, which is lower than revenue growth.

The bank expects large banks and regional banks to outperform joint stock banks, mainly due to better corporate loan growth. The revenue growth of the four major domestic banks and regional banks such as Bank of Nanjing (601009.SH) and Bank of Ningbo (002142.SZ) will be stronger; the profits of Bank of Ningbo, Bank of Hangzhou (600926.SH), and Bank of Changshu (601128.SH) will grow faster. Among the banks covered, the results of Chongqing Rural Commercial Bank (03618) and Minsheng Bank (01988) are likely to exceed market expectations for the second quarter, while Everbright Bank (06818,601818.SH) may be disappointing.