Securities Times News, Galaxy Securities pointed out that the good start of credit has laid a good foundation for the growth of bank loans throughout the year. The development of infrastructure and the recovery of manufacturing financing are expected to become the core drivers. Consumption and real estate are still weak points, and the progress of recovery needs attention. Comprehensively considering multiple factors such as the optimization of epidemic control measures, credit demand restoration and structural adjustment, and the narrowing of LPR repricing range, we judge that bank operations will be good in 2023, the risk of non-performing loans will be generally controllable, and the fundamentals are expected to remain stable. The current valuation of the banking sector is 0.51XPB, which is at a historically low level and has room for upward recovery. We continue to be optimistic about the current stage of banking sector allocation opportunities and give a “recommended” rating. In terms of individual stocks, Bank of Ningbo, Bank of Jiangsu and Bank of Changshu are recommended.
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