China Construction Bank Corp 9M noninterest income rises on bond, equity investments 

Overview

• China banking group's 9M net profit attributable to shareholders rose 6.55% yr

• Operating income for 9M increased 11.29%

• Net interest margin remained stable at 1.36% for the first nine months

• 9M Net noninterest income was RMB153,152 million, up 15.43%

Outlook

• Company did not provide specific financial guidance for future quarters or full-year results

Result Drivers

• BOND AND EQUITY INVESTMENTS - Co said higher gains on bond and equity investments boosted non-interest income amid market fluctuations

• TECHNOLOGY FINANCE - Co said growth rate of sci-tech loans exceeded average loan growth rate, with loans to sci-tech enterprises maintaining a leading position among peers

• COST CONTROL - Co said cost-to-income ratio dropped to 23.50%, down 2.03 percentage points from the same period last year

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for China Construction Bank Corp is HK$11.27, about 11.3% above its October 29 closing price of HK$10.13

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads

• Oct 30 - Agricultural Bank of China's nine-month net profit rises 7%

• Oct 30 - Bank of Communications nine-month net profit rises 6.1%

• Oct 28 - China's Bank of Qingdao nine-month net profit rises 15.7%

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)