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
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%
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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.)