Guosen Securities: 26Q3 banking sector performance remains steady, with other non-interest income supporting marginal improvement

Guosen Securities released a research report stating that, considering banks are still in a concentrated deposit repricing cycle, this supports net interest margins in achieving a phased, structural stabilization and recovery; structural risk exposure still awaits policy support, and it is expected that the banking industry's revenue is poised for continued improvement in 2026-27. At the same time, considering that the pressure from stabilization fund reductions in bank stocks has been significantly alleviated, the rebalancing of market risk appetite and style is helping banks stage a rising probability of achieving relative returns. Two main lines are recommended for attention: 1. High-quality small and medium-sized banks with certain fundamentals; 2. State-owned large banks with solid fundamentals and good defensive value.