Morgan Stanley has issued a research report stating that CCB (00939) management indicated stabilization in yields for consumer loans, mortgages, and large corporate loans. If the Loan Prime Rate (LPR) does not see significant cuts in 2026, yields are expected to remain stable. The firm reaffirmed its "Overweight" rating on CCB with a target price of HK$9.5.

The report forecasts that CCB's net interest margin (NIM) compression in 2026 will ease, with pressure primarily concentrated during the loan repricing period in Q1. Approximately 60% of mortgage loans will be repriced on January 1, 2026. Management anticipates a potential shift to positive growth in net interest income by 2026, supporting overall revenue growth.

Following periodic property value reassessments, the loan-to-value (LTV) ratio for mortgages exceeds 40%, and the bank remains satisfied with current mortgage credit quality. Management also expressed confidence in the current non-performing loan (NPL) coverage ratio and signaled willingness to gradually release provisions to support profitability as income stabilizes.