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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

9M Net Interest Income

RMB 470.41 bln

9M CET1 Capital Ratio

14.39%

9M Net Income Attributable

RMB 274.23 bln

9M Net Interest Margin

1.36%


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.)

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