Bank of Communications nine-month net profit rises 6.1%

Overview

• China bank's nine-month net profit attributable rose 6.1% yr/yr to RMB 74.26 bln

• Net interest income for the period was RMB 140.7 bln

• Net interest margin for the nine months was 1.24%

Outlook

• Bank of Communications did not provide specific financial guidance for future quarters or the full yr

Result Drivers

• LOWER INTEREST EXPENSE – Net interest income rose 9.36% as interest expense fell RMB20.320 bln, exceeding an RMB8.274 bln decline in interest income

• CXMT IPO GAIN – Trading gains rose 22.71%, mainly due to the IPO of equity investment CXMT Corporation, which lifted fair-value gains

• HIGHER CREDIT IMPAIRMENT – Credit impairment losses rose 10.17% to RMB48.604 bln, including an RMB4.531 bln increase in loan credit losses

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and 3 "sell" or "strong sell"

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

• Wall Street's median 12-month price target for Bank of Communications Co Ltd is HK$8.80, about 3.7% above its October 29 closing price of HK$8.49

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads

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

• Oct 28 - China's Bank of Zhengzhou 9M net profit rises on higher net interest income

• Oct 28 - Standard Chartered Q3 pretax profit up 29% on higher interest income

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(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.)