China Banks: Citi Conference Takeaways: China Banks

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China Banks: Citi Conference Takeaways: China Banks

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24 Jun 2026 10:31:48 ET │ 8 pages

China Banks

Citi Conference Takeaways: China Banks

CITI’S TAKE

We hosted CMB and CNCB at Citi’s 2026 Financials and Property

Conference. Key takeaways below.

NIM – to be largely stable in 2Q26E, with negatives on asset yield due to i) pressure on

loan yield for new corporate loans, which is still trending below existing loan book. Judy ZhangAC

Retail loan yield was relatively more stable; and ii) more loan repricing was in 1H vs. +852-2501-2798

2H, largely offset the positives of a lower funding costs helped by deposit repricing. judy1.zhang@citi.com

Both banks expect NIM to be largely stable q-q in 2Q26E. CNCB expects NIM to

compress by -5bps y-y in 2026E under the assumption of no LPR cut, and notes the

negative impact of LPR cut on NIM is relatively neutral currently. CMB expects NIM to

stabilize in 2H26E, and expects NII in 2Q26E to be largely stable q-q.

Loan growth – was largely supported by corporate loans in 2Q26E, while retail loan

growth remained soft. CNCB noted corporate loan growth was relatively muted in Apr

to May 2026, and picked up slightly in June. For retail loans, mortgage loan growth in

Apr to May 2026 improved vs. 1Q, although consumption loans remained soft. CNCB

expects new loans amount of RMB250-270bn in 2026E, most of which are corporate

loans. CMB’s retail loan balance likely still recorded a decline YTD. CMB is comfortable

with the current level of investment contribution to total assets at c.30%.

Non-II – should remain solid in 2Q26E with sustained momentum in wealth

mgmt./agency fees and decent trading gains (likely +ve y-y growth before factoring in

gains from disposal), partly offset by weak credit card fees. CMB expects 2Q26 non-