<div id="readability-page-1"><div>BofAS said in a research report that the average net profit of Chinese banks listed in H-shrs in 1Q26 improved to 1.1% YoY from 0.7% last year. During the period, pre-provision operating profit (PPOP) accelerated markedly to an average YoY growth of 9.2%, compared with 1.5% last year. Among them, net profit growth of BANK OF CHINA (03988.HK) -0.040 (-0.786%) Short selling $111.06M; Ratio 53.472% and ABC (01288.HK) -0.130 (-2.189%) Short selling $81.57M; Ratio 41.070% rose 4% to 4.5% YoY, while PPOP of PSBC (01658.HK) -0.010 (-0.195%) Short selling $10.26M; Ratio 31.049% , CCB (00939.HK) -0.130 (-1.471%) Short selling $214.76M; Ratio 49.225% and ABC increased 13% to 19% YoY.During the period, NIM rebounded 3 bps QoQ on average to 1.43%, representing the key positive surprise; net interest income rose 2.8% QoQ. Among them, NIM of CCB (00939.HK) -0.130 (-1.471%) Short selling $214.76M; Ratio 49.225% , MINSHENG BANK (01988.HK) -0.050 (-1.389%) Short selling $1.99M; Ratio 8.248% , CQRC BANK (03618.HK) -0.040 (-0.581%) Short selling $1.17M; Ratio 19.857% and ABC (01288.HK) -0.130 (-2.189%) Short selling $81.57M; Ratio 41.070% increased 6 to 9 bps QoQ, while CM BANK (03968.HK) -0.400 (-0.850%) Short selling $57.94M; Ratio 34.918% and CITIC BANK (00998.HK) -0.100 (-1.227%) Short selling $2.03M; Ratio 13.072% recorded declines of 2 to 3 bps.BofAS maintained a constructive view on the sector, citing a solid dividend yield of about 5%, income growth having bottomed out, defensive characteristics, and regulatory moats to counter AI disruption. It prefers ICBC (01398.HK) -0.100 (-1.445%) Short selling $134.76M; Ratio 43.114% and CCB (00939.HK) -0.130 (-1.471%) Short selling $214.76M; Ratio 49.225% , and is least positive on CM BANK (03968.HK) -0.400 (-0.850%) Short selling $57.94M; Ratio 34.918% and PSBC (01658.HK) -0.010 (-0.195%) Short selling $10.26M; Ratio 31.049% . (ss/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-05 12:25.)</div>This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.</div>

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BofAS reported that Chinese banks listed in H-shares saw an average net profit increase of 1.1% YoY in Q1 2026, up from 0.7% last year. Pre-provision operating profit (PPOP) grew 9.2% YoY. ICBC and CCB are favored, while CM Bank and PSBC are viewed less positively. The net interest margin (NIM) rose to 1.43%, with net interest income increasing 2.8% QoQ. BofAS maintains a positive outlook on the sector, citing solid dividend yields and defensive characteristics.

BofAS: CN Banks' H-shrs 1Q Results Beat; ICBC, CCB Favored