March 28, 2024 10:39 GMT
Chinese Bank Results: Little To Push Spreads Wider For Eurobanks
FINANCIALS
Chinese banks: non-performing trends look solid, little here to push spreads wider for HSBC, StanChart or UBS.
- Agricultural (1288 HK), BoCHK (3988 HK) and CCB (939 HK) all report today but we can only see details from the first so far. Agricultural is showing non-performers down 2bp (to 1.33% of loans) and only up (nominally) 0.3% from Sep-23.
- Three others have reported so far with the weakest (BoComm) only showing NPLs up 2bp (to 1.34%). The aggregate data for four of the big six bank shows NPLs flat at 1.31% (up 1.2% nominal) from Sep-23.
- There is further noise from “special mention” loans (akin to doubtful loans) but there appears little to push spreads wider for the Chinese-linked lenders in our EuroIG index (HSBC, StanChart, UBS predominantly).
(HSBA LN)(STAN LN)(UBSG SW)
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