We maintain our fair value estimates for the state-owned enterprise banks in our coverage except for Agricultural Bank of China, which is seeing higher-than-expected net interest margins. We now increase ABC’s NIM assumption by 5 and 2 basis points in 2024 and 2025, respectively, which leads to a rise in fair value estimate to HKD 3.80 from HKD 3.50. Overall, there are no changes to our outlook for the other SOE banks.
PSBC has limited credit exposure to risky sectors. Low-risk loans, including infrastructure and home mortgages, represented less than half of total loan books.
PSBC's capital ratios are lower than SOE peers. Its common equity Tier 1 ratio was 9.34% as of mid-2024, 134 basis points above its minimum requirement.
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1-Day Chart
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Name
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Price
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Morningstar Rating for Stocks
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Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| BNP Paribas ADR
BNPQY
| Kdhftqrr | Gqh | $75.9 Bil | |||
| Intesa Sanpaolo ADR
ISNPY
| Dxxxrbssf | Kshsf | $74.1 Bil | |||
| PNC Financial Services Group Inc
PNC
| Zzcfjbpb | Gpfjr | $72.4 Bil | |||
| U.S. Bancorp
USB
| Zsfjyhnpxv | Fztv | $69.8 Bil | |||
| Itau Unibanco Holding SA ADR
ITUB
| Dtwdmvqg | Tffl | $58.4 Bil | |||
| Truist Financial Corp
TFC
| Fkzrjsxsr | Hvrsxy | $56.8 Bil | |||
| Mizuho Financial Group Inc ADR
MFG
| Bcjkgxnj | Gzb | $51.3 Bil | |||
| Lloyds Banking Group PLC ADR
LYG
| Wztbycrws | Bthvtq | $47.3 Bil | |||
| NatWest Group PLC ADR
NWG
| Ktlxxthps | Dybk | $37.3 Bil | |||
| Deutsche Bank AG
DB
| Mwbxr | Ywp | $33.9 Bil |
United States