CITIC Securities released a research report stating that it gave Bank of Communications (03328) an “increase in holdings” rating. The increase in interest business volume in the first quarter was stable, rather than the convergence of credit impairment to support profit expansion, and the annual operating performance is expected to be ahead of its peers. Due to better-than-expected results for the first quarter, the earnings estimates per share for 2025 and 26 were raised to RMB 1.21 and RMB 1.29, respectively, with a target price of HK$7.
According to the report, Bank of Communications's revenue for the first quarter fell 0.03% year on year to 67.06 billion yuan, and net profit increased 1.44% to 24.99 billion yuan. Net interest income increased 2.24% year over year, which was significantly higher than the overall revenue growth rate. The net interest spread for the period was 1.27%. The bank estimates that the company is actively increasing the fine management and allocation of overseas assets of deposits and loans, which provides strong support for interest spreads.