--- title: "UBS Foresees Better 2Q Results from ABC/ ICBC/ BANKCOMM/ CM BANK" type: "News" locale: "en" url: "https://longbridge.com/en/news/294007128.md" description: "UBS forecasts positive Q2 results for China's banking sector, citing stable NIM and solid profit growth. While credit costs may rise due to adjustments, UBS expects SOE banks to outperform joint-stock peers. Top picks include high-dividend large banks like Bank of China and ICBC, alongside regional bank Bank of Ningbo. The broker maintains a constructive view on Chinese bank stocks, particularly H-shares with yields above 5%, supported by stable fundamentals and potential fund rotation." datetime: "2026-07-28T03:54:23.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294007128.md) - [en](https://longbridge.com/en/news/294007128.md) - [zh-HK](https://longbridge.com/zh-HK/news/294007128.md) --- # UBS Foresees Better 2Q Results from ABC/ ICBC/ BANKCOMM/ CM BANK China's banking sector will start releasing 2Q26 results from August 14, which was expected to serve as a positive catalyst, thanks to stable NIM, accelerating NII growth, solid revenue growth and steady net profit growth, UBS said in a report. However, revenue growth at some banks may slow from 1Q. Credit costs for most banks were expected to rise YoY due to one-off credit card non-performing loan classification adjustments and the rebuilding of bad loan provisions. Overall, some regional banks were predicted to record stronger revenue and net profit growth, while SOE banks should outperform joint-stock banks in the upcoming earnings season. Recent fund rotation from AI into value/high-yield sectors, together with the national team's shift toward supporting the stock market, may help the performance of bank stocks in the coming months. UBS foresaw ABC (01288.HK) +0.130 (+2.156%) Short selling $131.76M; Ratio 25.202% , ICBC (01398.HK) +0.030 (+0.412%) Short selling $217.86M; Ratio 17.258% , BANKCOMM (03328.HK) +0.040 (+0.539%) Short selling $45.00M; Ratio 21.471% and CM BANK (03968.HK) +0.520 (+1.062%) Short selling $135.21M; Ratio 40.759% to deliver relatively better 2Q results, while MINSHENG BANK (01988.HK) +0.020 (+0.567%) Short selling $16.15M; Ratio 39.398% , PING AN BANK (000001.SZ) +0.050 (+0.450%) and CCB (00939.HK) +0.060 (+0.667%) Short selling $543.05M; Ratio 15.436% may underperform. The broker upheld a constructive view on Chinese bank stocks, especially H shares with dividend yields above 5%. Stable fundamentals, low investor positioning and potential fund rotation back into defensive names should provide upside. In its 12-month outlook, the top picks remained defensive, high-dividend large banks, especially BANK OF CHINA (03988.HK) +0.070 (+1.301%) Short selling $202.78M; Ratio 24.310% , CCB (00939.HK) +0.060 (+0.667%) Short selling $543.05M; Ratio 15.436% , ICBC (01398.HK) +0.030 (+0.412%) Short selling $217.86M; Ratio 17.258% and CITIC BANK (00998.HK) \-0.060 (-0.781%) Short selling $15.85M; Ratio 10.128% , as well as high-growth regional banks such as BANK OF NINGBO (002142.SZ) +0.020 (+0.063%) . (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-27 16:25.) (A Shares quote is delayed for at least 15 mins.) ### Related Stocks - [IDCBY.US](https://longbridge.com/en/quote/IDCBY.US.md) - [BACHY.US](https://longbridge.com/en/quote/BACHY.US.md) - [03968.HK](https://longbridge.com/en/quote/03968.HK.md) - [03988.HK](https://longbridge.com/en/quote/03988.HK.md) - [03328.HK](https://longbridge.com/en/quote/03328.HK.md) - [01288.HK](https://longbridge.com/en/quote/01288.HK.md) - [01398.HK](https://longbridge.com/en/quote/01398.HK.md) - [601398.CN](https://longbridge.com/en/quote/601398.CN.md) - [601288.CN](https://longbridge.com/en/quote/601288.CN.md) - [601328.CN](https://longbridge.com/en/quote/601328.CN.md) - [600036.CN](https://longbridge.com/en/quote/600036.CN.md) - [601988.CN](https://longbridge.com/en/quote/601988.CN.md) - [002142.CN](https://longbridge.com/en/quote/002142.CN.md) ## Related News & Research - [Bank of China Boosts Capital With RMB30 Billion AT1 Bond Issuance](https://longbridge.com/en/news/293453677.md) - [Bank of Communications Raises RMB40 Billion via 2026 Tier 2 Capital Bonds](https://longbridge.com/en/news/293595950.md) - [China Merchants Bank Secures Regulatory Nod for New President](https://longbridge.com/en/news/294044395.md) - [Equatorial Pará signs up to R$ 200 million offshore loan with Banco Bocom BBM](https://longbridge.com/en/news/293668874.md) - [Chinalco Secures Financing to Boost Stake in Aluminum Corporation of China](https://longbridge.com/en/news/293745059.md)