Golden Finance News | Bank stocks generally fell, Agricultural Bank of China (01288) fell 3.66%, cqrc bank (03618) fell 3.09%, Bank of Communications (03328) fell 2.66%, Bank of Chongqing (01963) fell 1.98%, Industrial and Commercial Bank of China (01398) fell 1.83%, Bank of China (03988) fell 1.71%.
GF Sec stated that in terms of performance, compared to the first quarter, the overall performance of banks in the second quarter was stable, with a slight increase in profit growth, a slight decline in revenue and PPOP growth, and a temporary stabilization of the interest rate spread in the context of manual interest supplementation and deposit rate reduction, while middle-income still under pressure. Looking forward, it is expected that the overall credit cost will converge in its contribution to performance.
In terms of market conditions, the real prosperity of the banking industry is under pressure, but the industry index has reached a historical high in the recent period, with two core reasons: the relative toughness of the fundamentals and the advantages of high dividends and weights in terms of funding. Looking forward, if the weak economic expectations continue to cause the market index to be sluggish, banks may continue to benefit from the relative advantage brought by the passive index capital increment, at which point high-dividend major banks in the sector will take the advantage; if the economy recovers beyond expectations and drives the market to recover beyond expectations, banks that focus on recovery and growth in the sector will take the advantage.