Group 1 - The core viewpoint of the report is that the revenue of domestic banks is expected to grow by 2.1% year-on-year in Q4 2025, driven by stable fee income and a stabilizing net interest margin, partially offsetting the impact of slowing loan growth [1] - Citigroup anticipates that Chongqing Rural Commercial Bank will outperform expectations in Q4, while Everbright Bank and Changshu Bank are expected to underperform [1] - The report highlights strong loan growth in January, primarily driven by corporate loans, and predicts that net interest margin pressure will ease in 2026, leading to improved revenue growth for the banking sector compared to 2025 [1] Group 2 - The anticipated revenue growth for the banking sector in FY 2026 is expected to be slightly better than FY 2025, mainly due to stabilizing net interest margins and strong fee income [1] - With the yield on China's 10-year government bonds peaking, the spread between dividend yields and 10-year government bond yields is expected to widen, attracting investors seeking returns [1] - The preferred banks for investment are Bank of China and Ningbo Bank according to Citigroup [1]