Morgan Stanley recently released a report indicating that the performance of domestic bank stocks shows signs of a stabilized net interest margin and healthy growth in fee income in the fourth quarter of 2025. The bank believes that China Construction Bank (00939.HK), Bank of China (03988.HK), CITIC Bank (00998.HK), INDUSTRIAL BANK (601166.SH), and PAB (000001.SZ) are expected to achieve higher-than-industry revenue and profit growth in 2026.
The bank listed the performance data comparison of domestic bank stocks from last year:
Stock│Year-on-year change in net profit│Return on equity
Agricultural Bank of China (01288.HK)│+3.2%│10.2%
Industrial and Commercial Bank of China (01398.HK)│+0.7%│9.5%
China Construction Bank (00939.HK)│+1.0%│10.1%
Bank of China (03988.HK)│+2.2%│9.0%
Bank of Communications (03328.HK)│+2.2%│8.4%
China Merchants Bank (03968.HK)│+1.2%│13.4%
CITIC Bank (00998.HK)│+3.0%│9.5%
China Minsheng Banking Corp (01988.HK)│-5.4%│4.9%
Zhongrong International Trust (03618.HK)│+5.3%│9.0%
Postal Savings Bank of China (01658.HK)│+1.1%│9.0%
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Average of the five major state-owned commercial banks│+1.9%│10%
Industry average│+1.6%│9.1%
Stock│Year-on-year change in net profit in the fourth quarter last year
Industrial and Commercial Bank of China│+1.9%
China Construction Bank│+2.2%
Bank of China│+5.3%
Agricultural Bank of China│+3.6%
Bank of Communications│+2.9%
China Merchants Bank│+3.4%
Postal Savings Bank of China│+1.7%
China Minsheng Banking Corp│+11.7%
CITIC Bank│+2.8%
Zhongrong International Trust│+19.1%
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Average of the five major state-owned commercial banks│+3.2%
Industry average│+4.4%