Ping An Bank - A 1Q26 briefing takeaway: NIM stabilizing, asset quality improving, but retail inflection still elusive — remain Neutral

研报英文原文证据摘录

Ping An Bank - A 1Q26 briefing takeaway: NIM stabilizing, asset quality improving, but retail inflection still elusive — remain Neutral

Asia Pacific Equity Research

12 May 2026

This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of

Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan.

Neutral

Ping An Bank - A 000001.SZ, 000001 CH

Price: Rmb11.25

1Q26 briefing takeaway: NIM stabilizing, asset quality 12 May 2026

improving, but retail inflection still elusive — remain Price Target: Rmb11.20

Neutral PT End Date: 31 Dec 2026

Our takeaway from the PAB 1Q26 briefing today is net positive, with Banks & Financial Services

management committing to sequential NIM stabilization through 2026 (>1.79% AC Katherine Lei

vs. JPMe 1.78%), improving asset quality with a declining NPL formation (852) 2800-8552

ratio, and positive revenue and profit growth in FY26 (BBGe: revenue +2% katherine.lei@jpmorgan.com

and profit +2% y/y). However, we remain Neutral, as management J.P. Morgan Securities (Asia Pacific) Limited/

commented that the retail business has yet to see an inflection point, that there J.P. Morgan Broking (Hong Kong) Limited

could be volatility in the quarterly revenue and profit trend, and that 2Q26 Peter Zhang

may face headwinds from a high base of investment income in 2Q25. (852) 2800-8557

peter.zhang@jpmorgan.com

• NIM on a stabilizing trend; management targets full-year NIM above J.P. Morgan Securities (Asia Pacific) Limited/ J.P. Morgan Broking (Hong Kong) Limited

1.79%. NIM showed a recovery trend in 1Q26, driven by faster funding

Lincoln Yu