Xin Lang Cai Jing·2025-08-28 12:31Core Viewpoint - CITIC Bank reported a decline in revenue but an increase in net profit for the first half of 2025, indicating a mixed performance with improvements in certain areas [1][2]. Financial Performance - Revenue for the first half of 2025 was CNY 105.76 billion, a year-on-year decrease of 3%, while net profit attributable to shareholders was CNY 36.48 billion, a year-on-year increase of 2.8% [1]. - The annualized weighted average return on equity was 9.77%, down 0.92 percentage points year-on-year [1]. Revenue and Profit Structure - Revenue and PPOP decreased by 3% and 2.5% year-on-year, respectively, but the decline was less severe compared to the first quarter [2]. - Net interest income fell by 1.9% year-on-year, while non-interest income decreased by 5.1%, with the latter's decline narrowing significantly compared to the first quarter [2]. Asset and Loan Growth - As of the end of the second quarter, interest-earning assets and loans grew by 7.8% and 3.7% year-on-year, respectively [3]. - The bank's loan structure shifted towards higher-quality loans, with significant growth in loans to key sectors such as green finance and manufacturing [3]. Deposit and Funding Structure - Interest-bearing liabilities increased by CNY 317.2 billion in the first half, with a slight decrease in the second quarter due to a reduction in interbank liabilities [4]. - The proportion of time deposits increased to 57.3% by the end of the second quarter, reflecting a trend towards more stable funding sources [4]. Interest Margin and Cost Management - The net interest margin was recorded at 1.63%, a slight narrowing from the first quarter [5]. - The bank managed to lower the cost of interest-bearing liabilities through strategic adjustments, which is expected to continue benefiting from the rolling repricing of existing deposits [5]. Non-Interest Income and Asset Quality - Non-interest income fell by 5.1% year-on-year, but the decline was significantly less than in the first quarter, with certain fee income categories showing growth [6]. - The non-performing loan ratio remained stable at 1.16%, with a slight decrease in the corporate loan non-performing rate [7]. Capital Adequacy and Dividends - As of the end of the second quarter, the core Tier 1 capital adequacy ratio was 9.49%, showing a slight increase [7]. - The dividend payout ratio for the mid-year 2025 increased to 30.7% from 30.5% in 2024 [7]. Future Outlook - The bank aims to strengthen its financial services model and enhance its operational foundation, with earnings per share forecasts for 2024-2026 set at CNY 1.25, 1.29, and 1.33, respectively [8].