Greater China Banks Daily: BEA H126 results preview: further de-risking; Industrial profits rose 21.1% YoY in May 2026, slowing down from April

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Greater China Banks Daily: BEA H126 results preview: further de-risking; Industrial profits rose 21.1% YoY in May 2026, slowing down from April

Global Research

29 June 2026ab

Greater China Banks Daily Equities

ChinaBEA H126 results preview: further de-risking;

Industrial profits rose 21.1% YoY in May 2026, Banks

slowing down from April MayAnalystYan

may.yan@ubs.com

+852-2971 7157

BEA H126 results preview: further de-risking Alex Ye

Analyst

Bank of East Asia is projected to log a mild 3.6% net profit increase alongside a strong S1460522090005

11.3% rise in pre-provision operating profit for its H126 results. We expect the net alex.ye@ubs.com

interest income to decline by 1.5% half-on-half as flat net interest margins are severely +86 755 2215 8858

dragged down by soft loan growth. Moreover, the cross-border wealth expansion

Catherine Yang, CFA

remains constrained under the near-term regulatory uncertainties. The credit costs are Analyst

also set to remain elevated at 102bps due to a 15.4% surge in impairment charges tied S1460526010003

to mainland and Hong Kong property exposures. We maintain the stock’s 12-month catherine-za.yang@ubs.com

rating of Neutral and reduce the PT from HK$ 14.50 to HK$ 13.10. (full note) +86-755-2215 8860

Helen Li, CFA

Industrial profits rose 21.1% YoY in May 2026, slowing down from April Analyst

Bloomberg, Jun 27: China’s industrial profits increased by 21.1% YoY in May 2026, helen-za.li@ubs.com

down from a 24.7% in April. The cumulative earnings of industrial companies from +852-2971 6066

January to May reported Rmb 3.14trn, up 18.8% YoY (compared with the Bloomberg

forecast of 19%). The expansion was heavily driven by a global AI boom in high-end

power and storage chips, which pushed the electronic sector’s profits up by 103.9%,