Stable asset quality and stablizing NIM supports CCB's resilient earnings growth

China Construction Bank's differentiated deposit franchise and high-quality customer base set it apart from peers, underpinned by its expansive physical network and entrenched relationships across both retail and corporate segments. However, this structural advantage is currently offset by industry-wide headwinds, namely decelerating deposit growth and a continued flight to time deposits amid the ongoing rate-cut cycle. We anticipate CCB's net interest margin (NIM) to demonstrate relative resilience and outperform as economic activity rebounds.