CICC: It is expected that the banking industry will operate steadily by 2025.

On January 1st, Jin10 data reported that CICC research report pointed out that it is expected that the banking industry will be stable in 2025, and the pressure of net interest margin is expected to decrease (narrowing by about 10-15bp throughout the year). Debt disposal work helps repair the balance sheet (net non-performing loan generation rate is stable), and the bank’s revenue and profit will continue to show stability. Looking ahead, the monetary policy will be moderately loose, and it is expected that interest rates will be cut by 40-60bp symmetrically, with a 100bp reduction in reserve requirements. 1) High dividend strategy is still the main logic of bank stock trading in 2025, following the level and certainty of dividend yield. 2) Targets with stable or marginal improvement expectations in the region where the bank is located. 3) H-shares are expected to perform better than A-shares, mainly due to the attractiveness of dividend yield to allocation funds. 4) The effect of incremental policies is evident, and banks with a higher proportion of market-oriented funding demand are followed.