Investment Rating - The investment rating for CITIC Bank is "Buy" (maintained) [1][27] Core Views - CITIC Bank, backed by the large state-owned enterprise CITIC Group, has strong profitability resilience. The bank reported a revenue of 51.77 billion yuan in Q1 2025, with a year-over-year decline of 3.72%. Net interest income grew by 2.05% year-over-year, indicating stable growth. The net interest margin for Q1 2025 was 1.65%, down 5 basis points year-over-year, which is a manageable decline. The bank achieved a net profit attributable to shareholders of 19.51 billion yuan, reflecting a year-over-year increase of 1.66% [4][5][6]. Financial Performance Summary - As of the end of Q1 2025, total assets reached 9.86 trillion yuan, a year-over-year growth of 8.65%. Loans increased by 5.08% year-over-year, benefiting from strong corporate loan growth of 10.58%. Deposits amounted to 6.03 trillion yuan, with a year-over-year growth rate of 11.26%, driven by increases in both corporate and retail deposits [5][6]. - The bank's cash dividend payout ratio for ordinary shares rose to 30.50% in 2024, up over 2 percentage points from 28.01% in 2023. As of June 3, 2025, the dividend yield stood at 4.31%, highlighting its high dividend investment attribute [5][6]. Future Outlook - The bank has maintained its profit forecast, expecting net profits attributable to shareholders to be 68.8 billion yuan, 71.1 billion yuan, and 71.8 billion yuan for 2025, 2026, and 2027, respectively, with year-over-year growth rates of +0.36%, +3.30%, and +1.01% [4][7]. - CITIC Bank has been approved to establish a wholly-owned subsidiary, CITIC Financial Asset Investment Company (AIC), with an investment of 10 billion yuan. This approval marks CITIC Bank as the second joint-stock bank to receive such authorization, enhancing its capabilities in equity investment and enabling it to better serve the lifecycle of technology enterprises [6][8].

Investment Rating - The investment rating for CITIC Bank is "Buy" (maintained) [1] Core Views - CITIC Bank, backed by the large state-owned enterprise CITIC Group, demonstrates strong profitability resilience. The bank reported a revenue of 51.77 billion yuan in Q1 2025, reflecting a year-on-year decline of 3.72%. The net interest income grew by 2.05% year-on-year, indicating stable growth. The net interest margin for Q1 2025 was 1.65%, down 5 basis points year-on-year, which is a manageable decline. The net profit attributable to shareholders was 19.51 billion yuan, up 1.66% year-on-year, showcasing strong profitability resilience. The profit forecast remains unchanged, with expected net profits of 68.8 billion, 71.1 billion, and 71.8 billion yuan for 2025-2027, representing year-on-year growth of 0.36%, 3.30%, and 1.01% respectively. The current stock price corresponds to a price-to-book ratio of 0.62, 0.59, and 0.54 for 2025-2027, maintaining a "Buy" rating [4][5][6]. Summary by Sections Financial Performance - As of the end of Q1 2025, total assets reached 9.86 trillion yuan, a year-on-year increase of 8.65%. Loans grew by 5.08% year-on-year, benefiting from strong corporate loan issuance, which increased by 10.58% year-on-year. Deposits amounted to 6.03 trillion yuan, with a year-on-year growth rate of 11.26%, driven by increases in both corporate and retail deposits [5][6]. Dividend Policy - In 2024, CITIC Bank's cash dividend ratio for common stock reached 30.50%, an increase of over 2 percentage points from 28.01% in 2023. As of June 3, 2025, the dividend yield stood at 4.31%, highlighting the bank's strong dividend investment attributes [5]. Strategic Developments - On May 8, 2025, CITIC Bank announced plans to invest 10 billion yuan to establish a wholly-owned subsidiary, CITIC Financial Asset Investment Company (AIC). On June 3, 2025, the AIC was officially approved for establishment, making CITIC Bank the second joint-stock bank to receive such approval. This move enhances the bank's capabilities in equity investment and is expected to optimize corporate leverage structures while deepening involvement in the full lifecycle services of technology enterprises, creating a synergistic effect between investment and lending [6][7]. Financial Projections - The financial summary indicates projected revenues of 221.58 billion yuan for 2025, with a year-on-year growth of 3.71%. The net profit attributable to shareholders is expected to be 68.83 billion yuan, reflecting a modest growth of 0.36%. The bank's price-to-earnings ratio is projected to be 5.69 for 2025, with a price-to-book ratio of 0.62 [7][8].