[ET Net News Agency, 9 February 2018] HSBC Global Research lifted its target price for
CITIC Bank (00998) to HK$6.3 from HK$5.7, and maintained its "hold" rating.
The research house cut its 2017 earnings forecast by 3% mainly on the lower net interest
income and higher provisioning; it also cut its 2018 earnings forecast by 1% mainly on the
lower net interest income and lower fee income, despite the lower provisioning and lower
operating expenses.
It said CITIC Bank is changing its strategy to focus on "assetlight, capital-light, and
cost-light" businesses. This follows tighter regulations for WMPs and interbank funding,
which CITIC relied on. This strategy has resulted in CITIC being one of the first joint
stock banks to report a sequential assets decline in 2017.
The new, quality-focused, strategy points to improvements in NPL positions, liquidity
ratios and capital ratios. However, slow growth and the change in the business mix may
impact profitability. (KL)
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00998 CITIC BANK
Nominal 
4.420 +0.060 (+1.376%) Others
09/02/2018 15:46
[I-bank focus]HSBC lifts CITIC Bank (00998) to HK$6.3
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