On 20 Oct 2008, the company released its 3Q 2008 Report that estimates its net profit for 3Q to have risen approximately 48.07%. In addition, China CITIC Bank Corporation Limited announced its estimated net profit for the nine months to 30 Sept 2008 to have increased 130%, compared to RMB 5.2 bln over the same period in 2007.

The company indicated that over the first three quarters of 2008, its various businesses continued to maintain a momentum of positive growth. Its revenue reached RMB 198.9 bln, up 25.24% YOY, and its net profit hit RMB 84.6 bln, an increase of 48.07% YOY.

China CITIC Bank said that the large increase in its financial performance was attributable to its successful development of businesses. This includes expanding interest margin, rapid growth in intermediate business revenue and the influential decrease in tax.

Prior to the issuance of the company's and China CITIC bank's respective 3Q 2008 Reports, three listed banks published their reports for the first nine months of 2008. Shenzhen Development Bank estimated a net profit growth of between 75% and 80%, with a declining nonperforming loan ratio. Shanghai Pudong Development Bank revealed that its net profit for the first three quarters of 2008 is estimated to have increased approximately 150% YOY. The increase is mainly attributable to growth in asset size, stable asset quality, growing interest margin and non-interest revenue, as well as a drop in the effective tax rate. Furthermore, Bank of Nanjing announced that its net profit for the first three quarters of 2008 is likely to have increased by more than 85% YOY. The increase is attributable to a growth in net interest revenue, trading-financial assets at fair value, commission fees and net commission earnings.

Industry insiders reminded that, as a year passed since the implementation of the macro-tightening policy, the impact of the policy on asset quality will be gradually uncovered and lead to a growth in nonperforming loan ratios for the banking sector for the year to September. It is estimated that the growth may be reflected dramatically in the annual reports.


Moreover, on 20 Oct 2008, China CITIC Bank announced that in mid-October 2008, it won a bid for land use rights to the CITIC Tower, situated in the center of Futian District, Shenzhen. There are plans in place for the construction of a commercial office building for the headquarters of the credit card giant.


Source: Securities Daily

Date: 20 Oct 2008

CN01/IS/LZ/NK/KM