CITIC Bank (601998) 18 Annual Report Performance Review: Asset Structure Continues to Adjust Interest Spreads to Boost Performance

I. Event Overview CITIC Bank released the 2018 Annual Report.

Net profit attributable to mothers in 2018 was 44.5 billion yuan, with a ten-year increase in value4.

57%; operating income was US $ 164.9 billion, with annual value added of 5.

2%; budget benefit 0.

88 yuan.

Second, the analysis and judgment of loans to increase interest income, inter-bank debt lower interest rates to improve the net interest margin improvement is the main reason for the performance boost.

The company’s net interest margin is 1.

94%, rising by 0 every year.

The 15 samples are the result of the joint effect of rising interest rate income and falling index expenditure.

On the income side, loan interest income was 165.6 billion yuan, an annual increase of 17%, and both volume and price rose (the average balance of loans increased by 341.2 billion yuan, and the average yield increased by 0.

25 samples) increased interest income on the entire asset side.

The expenditure end is related to this. The interbank debt index expenditure was 29.8 billion, a year-on-year decrease of 101 trillion, a 25% decrease, 杭州夜网 and the cost of the entire debt end.

The main reason for the decrease in the interbank interest rate index expenditure was due to the expansion of the interbank size.

Under the adjustment of the business structure, the average balance of funds deposited and borrowed by other banks decreased by more than 247.3 billion yuan.

The asset structure was further adjusted and the business structure was optimized. The company further adjusted the asset structure. Interbank assets and structured investment decreased by 193.2 billion, a decrease of 21.


Credit resources continued to be tilted towards retail business, with personal loans accounting for 41%, gradually increasing2.

6 units.

The voluntary contraction of public loans has been reduced by nearly 5 units each year.

Although the scale of corporate business has been reduced, it has adhered to the “five general models” and deeply cultivated strategic customers and key institutional customers.

The non-performing ratio is better than the previous quarter, and the overall asset quality can control the company’s non-performing ratio1.

77%, increasing by 0 every year.

09 averages, but the non-performing ratio in the third quarter decreased by 0.

02 unions; focus on loans 2

36%, a decrease of 0 from the second quarter of last year.

22 units, the margin is good.

The bad report mainly comes from the impact of downward economic pressure on private SMEs, especially the relative pressure in the first half of 2018.

The company expanded its collection and settlement efforts, writing off 46.9 billion, and writing off more than 11.3 billion billions, realizing a provision coverage ratio of 158% and a loan-to-loan ratio of 2.

8%, all meet regulatory requirements.

Asset quality is generally controllable.

III. Investment suggestion: The company actively optimizes and adjusts its asset business structure, makes full use of the deep synergy with the business of CITIC Group and its subsidiaries, cultivates strategic customers for the public, and increases the proportion of retail sales.

It is expected to further improve performance.

The company’s valuation is at the historical average and it is recommended with caution.

The company’s corresponding BVPS is expected to be 8 in 19-21.



4 yuan, the corresponding PB is 0.


4. Risk warnings: The unexpected downturn in the economy has caused serious deterioration in asset quality; major policy changes have taken place.