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Research Reports for Digging Gold丨Ping An Securities: Industrial And Commercial Bank Of China shows steady profit growth, maintaining a 'recommended' rating.
The research report from Ping An Securities points out that the Industrial And Commercial Bank Of China (601398.SH) will continue to narrow its revenue decline in 2024, with profit also recovering. The full-year net income attributable to shareholders is expected to increase by 0.5% year-on-year (for Q1-Q3 of 2024, 0.1%), and the profit growth rate is steadily rising, believed to be mainly due to the revenue recovery, especially as the decline in net interest income continues to narrow. From the revenue side, the Industrial And Commercial Bank Of China is expected to see a 2.5% year-on-year decline in revenue for 2024, narrowing by 1.3 percentage points compared to the first three quarters, mainly driven by the narrowing decline in net interest income, which is expected to drop by 2.7% year-on-year (for Q1-Q3 of 2024, -4.9%), continuing to narrow.
ICBC 2024 Profit Ticks Up, Revenue Slips 2.5%
[Brokerage Focus] Citi: The large state-owned banks' private placement of A-shares helps alleviate net interest margin pressure, but is more Bullish on joint-stock banks.
Jinwu Financial News | Citigroup's Research Reports indicate that the Private Placement of shares by Bank Of China (03988), Postal Savings Bank Of China (01658), China Construction Bank Corporation (00939), and Bank Of Communications (03328) will help alleviate net interest margin pressure and restore lending capacity. This round of Refinancing will respectively raise the core Tier 1 capital adequacy ratios (CET1) of CCB, BOC, PSBC, and BOCOM to 15%, 13.1%, 11.5%, and 11.1%, and will dilute the existing Shareholders' equity to 4.3%, 8.5%, 15.6%, and 17.2%, but will only affect the dividend yield starting from 2025.
Hong Kong stock market movement | China Mainland Banking stocks rise against the trend, China Construction Bank Corporation (00939) increases by over 4%, with four state-owned banks introducing a strategic investment of 520 billion yuan.
China Mainland Banking stocks rose against the trend, as of the time of publication, China Construction Bank Corporation (00939) increased by 3.73% to 6.95 Hong Kong dollars; Bank Of China (03988) rose by 1.96% to 4.68 Hong Kong dollars; CM BANK (03968) increased by 1.86% to 46.5 Hong Kong dollars; Industrial And Commercial Bank Of China (01398) rose by 1.27% to 5.56 Hong Kong dollars.
China's Big State Banks to Get $71.6 Billion Capital Injection
【Brokerage Focus】CITIC SEC expects that the Banks' performance in Q1 2025 will be the lowest point of the year, with the subsequent trend likely to rise.
According to CITIC SEC, the annual reports released by listed Banks show that in Q4 2024, the revenue and profit growth of listed Banks continued to improve. Analyzing the operational factors, while the Industry's pace of asset expansion in 2024 is converging, the decline in interest margin is also narrowing. Although the annual non-interest income is still decreasing, the decline in Q4 2024 has significantly narrowed, and in the context of a strengthening bond market, trading revenues continue to remain positive. Regarding asset quality, the overall non-performing loan ratio of listed Banks continues to improve, and their risk resilience remains robust. Looking ahead, the interest margin for listed Banks in Q1 2025 is still expected to decline due to the revaluation of existing loans, while investment income may fluctuate due to market influences but is anticipated to be stable.
Pei Boon-Aik Huat : There is none.