CITIC Securities: Bank sector may be favored by funds with lower drawdown requirements, absolute returns expected to continue.

CITIC Securities research report stated that last week, the bank index rose by 0.3%, ranking second among the 30 industry indices in Wind CITIC, indicating relative value amid uncertainty in the external markets. In the next month, banks will enter the financial reporting season, with many banks already predicting an increase in annual reports and expecting small variances. In terms of first-quarter performance, it is expected that bank asset allocation will remain stable, interest differentials will decrease as expected, credit risk situation will be relatively stable, and the sector is expected to continue the performance trend seen since last year. Due to the downward trend in market funding and relatively stable liquidity patterns, the bank sector may be favored by funds with lower retracement requirements, and absolute returns are expected to continue.