Broker Name: OCBC Investment Research
Date of Report: 29 September 2025
Excerpt from OCBC Investment Research report
Report Summary
- OCBC Investment Research maintains a BUY rating on China CITIC Bank (CNCB), raising its fair value to CNY 10.25 due to improved ESG metrics and sound asset quality.
- Despite a 2.8% year-on-year profit growth for 1H25, share prices have declined, likely pressured by a rising 10-year Chinese government bond yield and net interest margin compression.
- CNCB’s asset quality is robust, with a stable non-performing loan ratio, strong allowance coverage, and CET1 capital adequacy above regulatory requirements.
- The bank’s ESG rating was upgraded, driven by better consumer financial protection, privacy management, and support for green finance initiatives.
- Key risks include geopolitical tensions, competition, regulatory tightening, and further margin compression; potential catalysts include stronger economic growth and improved asset quality.
- Valuation metrics show CNCB trading at attractive P/E and P/B ratios compared to major Chinese bank peers, with a healthy dividend yield.
Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Investment Research can be the first to access the full report from the OCBC Investment Research website: https://www.ocbc.com/group/investment-research.html
