China's banks will outpace their peers in India and Indonesia, the best performers in Asia's banking industry over the past decade, to deliver the highest returns over the next five to 10 years, analysis firm CLSA Ltd said.
The top eight performers among Asian banks over the past decade were all from India, with gains of 400 percent to 3,000 percent, CLSA said in a research report released today.
Banks in Indonesia in second place for a period of three to five years, no data available for 10 years, the report said.
Both countries experienced the strongest growth of credit such as loans from India by 622 percent over the past 10 years by a growth of 508 percent in Indonesia, followed, and Daniel Tabbush Suangsuda Sinsadok the CLSA analysts said in the report.
That shows "positive" implications for China's banks given the nation's 326 percent increase in loan growth over that period, they wrote in their analysis.
"Where China stock price data is only recent, we can at least assume that the fact that those banks are returning the third-highest loan growth over the past five and 10 years can in fact mean strong total returns over the long term," the analysts wrote.
China's loan growth of 79 percent was the highest over the past three years, according to the report by CLSA, which is "overweight" on the nation's bank stocks as well as those in India and Indonesia.
