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| HSCEI1 | 7,906.11 | 0.00 | -- |
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2026-11-02 15:50:49 Citi issued a research report saying that CCB (00939.HK) reported a 14.5% YoY increase in pre-provision operating profit for the first nine months of this year to RMB470.7 billion, while earnings rose 6.6% YoY to RMB274.2 billion, equivalent to 77% of full-year market expectations. Pre-provision operating profit for 3Q rose 18.7% YoY to RMB143.3 billion, benefiting from strong trading gains (including fair value gains from holdings in CXMT), a lower NIM base, and improved cost efficiency. Net profit for 3Q increased 9.8% YoY to RMB104.7 billion, but was dragged by a higher effective tax rate. Citi noted that positive factors included a 95.5% YoY increase in trading gains in 3Q, accounting for 9% of revenue, while the cost-to-income ratio fell 3.4 ppts YoY to 27.3%. In terms of asset quality, the non-performing loan ratio remained flat QoQ at 1.29%, while the non-performing loan coverage ratio stood at 233.2%. Negative factors included slower loan growth, a 4 bps QoQ decline in NIM to 1.34%, and a 17.7% YoY drop in fee income. The broker expected the market to react positively to CCB's strong 3Q results and believed the performance could enhance visibility for the bank to achieve high-single-digit YoY earnings growth above peers in 2026. Citi said CCB's H-share valuation remains attractive, with forecast 2026 price-to-book ratio of 0.63x and dividend yield of 4.7%, the highest among the Big Five Chinese banks' H shares. The broker maintained a Buy rating with a TP of HKD11.26.(da/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |