Bank of America Securities lowered its earnings forecast for China Citic Bank (00998) from this year to 2026 by 9% to 14% per share.
Intelligence Finance APP learned that Bank of America Securities released a research report stating that it reiterated its "buy" rating on China Citic Bank (00998), based on the trend of superior industry income and attractive dividends. The forecast for earnings per share from this year to 2026 was lowered by 9% to 14% to reflect weaker mid-term earnings and dilution from convertible bonds. However, the capital cost ratio of the shares decreased from 10% to 9.2%, and the target price was lowered from HKD 5.6 to HKD 5.4, a decrease of 4%.
The company's net income for the mid-term fell by 1.6% compared to the same period last year, which was a 0.2% increase compared to the first quarter. The operational surplus before provisions increased by 1.4% compared to the same period last year, which was a 5.5% increase compared to the first quarter. Both figures were lower than the bank's expectations by about 1%. The Tier 1 capital adequacy ratio of China Citic Bank increased by 58 basis points to 9.43% compared to the same period last year, benefiting from the conversion of convertible bonds. The mid-term dividend was RMB 18.47 per share, with a dividend payout ratio of 29.2%, which was higher than last year's 28%.