Huatai Securities: Seizing the structural opportunities of high-quality bank stocks.

Huatai Securities research report indicates that the narrowing of interest spread and the alleviation of non-interest disturbances are expected to drive the improvement of revenue and profit growth for listed banks in the first half of 2025. Looking ahead, the improvement of liabilities continues to show results, and bank interest spreads are expected to gradually stabilize. The capital market is warming up, with the potential for middle-income recovery; however, there has been significant bond market volatility since July, so attention should be paid to other non-interest trends. Overall, asset quality is expected to remain stable, with a focus on the turning point of retail risks. The second quarter fund-holdings of banks have marginally increased to 4.87%, and as of August 29, the PB valuation of the bank sector is at 0.71 times, showing cost-effective potential for allocation.