CITIC Securities: bullish on the banking sector, expecting continued absolute returns.

A research report from CITIC Securities pointed out that the interim profits of banks have stabilized and recovered, with the recovery slightly exceeding expectations. Specifically, the interest rate spread is expected to stabilize, investment income contributes to revenue, asset quality situation is stable, and the improvement in profits for a single quarter is significant. CITIC Securities predicts that there is still room for upward profit growth for the whole year. From a market perspective, the outflow of speculative funds in the previous period has suppressed the performance of bank stocks, and the stable fundamental structure has boosted investor confidence in sector allocations, with expectations for continued absolute return trends in the future.