Core Viewpoint - The transformation journey of CITIC Bank's "new retail" model reflects the evolution of China's retail banking sector, shifting from linear growth based on business scale to a focus on deep customer value extraction [1][16]. Industry Overview - The retail banking sector in China is at a crossroads, facing declining growth rates and profitability amidst a complex market environment [1][2]. - Despite challenges such as low interest rates and high risks, retail banking remains a crucial stabilizing force for banks [1][2]. - The traditional growth model based on scale expansion is becoming less viable, prompting banks to explore new paths focused on wealth management and customer service [1][2][6]. Performance Metrics - In 2024, CITIC Bank's retail assets under management (AUM) grew by 10.62% to 4.69 trillion yuan, while retail loan balances increased by 3.43% to 2.36 trillion yuan [2][6]. - Comparatively, China Merchants Bank (CMB) reported a retail AUM growth of over 12% and a 6% increase in retail loan balances [2]. Strategic Initiatives - CITIC Bank's retail banking strategy emphasizes understanding and adapting to market cycles, with a focus on resilience and strategic adjustments [3][10]. - The bank aims to enhance its retail banking capabilities through systematic and structural improvements, contrasting with competitors that focus on rapid scale maximization [2][10]. Risk Management - In response to rising credit risks, CITIC Bank has implemented various risk management strategies, resulting in a retail loan non-performing ratio of 1.25% in 2024, with improvements in individual loan and credit card delinquency rates [9][10]. Digital Transformation - The bank has invested in digital tools to enhance customer engagement, achieving a 58.8% increase in customer interactions to 106 million in 2024 [13]. - CITIC Bank's digital initiatives include the development of an agile operational framework and the integration of AI capabilities to improve service efficiency [12][13][14]. Customer Engagement - The number of customers with three or more primary services at CITIC Bank reached 24.26 million, a nearly 20% increase year-on-year, highlighting the bank's focus on deepening customer relationships [7][10]. Long-term Vision - CITIC Bank's leadership emphasizes the importance of a strong retail banking foundation for achieving its goal of becoming a top-tier bank, with a commitment to wealth management as a core business axis [10][11].

Core Viewpoint - CITIC Bank reported a net operating income of 213.65 billion yuan for 2024, a year-on-year increase of 3.8%, and a net profit of 68.58 billion yuan, up 2.3% year-on-year, indicating stable growth amidst a challenging banking environment [1][2]. Financial Performance - As of the end of 2024, CITIC Bank's total assets exceeded 9.5 trillion yuan, reflecting a growth of 5.31% compared to the previous year [1]. - The bank achieved a net interest margin (NIM) of 1.77%, a year-on-year decrease of 1 basis point, but outperformed the market by 16 basis points, supporting revenue growth [3]. Revenue Drivers - The growth in profit was attributed to revenue growth driven by stable net interest margins and a dual boost from fee income and other non-interest income [2]. - CITIC Bank's proactive management of liability costs, particularly through the growth of transaction settlement business, has been a key factor in maintaining stable net interest margins [4]. Asset and Liability Management - The bank has improved its deposit structure, with the proportion of demand deposits reaching 52% in corporate deposits, which is 9 percentage points higher than the industry average [4]. - On the asset side, CITIC Bank's loan-to-asset ratio increased to 63.9%, with a significant rise in personal loans, indicating a focus on enhancing asset yield stability [5]. Asset Quality - CITIC Bank's non-performing loan (NPL) ratio decreased to 1.16%, the lowest in 11 years, with a provision coverage ratio of 209.43%, marking the best level in over a decade [7]. - The bank's asset quality improvement is attributed to a focus on corporate asset quality and a dual strategy of controlling new risks while cleaning up historical risks [8]. Retail Credit Risk Management - The bank has implemented stringent risk management measures for retail assets, including tightening credit card customer access and enhancing mortgage loan controls [9]. - Despite improvements in retail asset quality, the bank acknowledges that retail credit risks are rising, reflecting a broader industry trend [9].

Core Insights - In 2024, CITIC Bank reported total assets exceeding 9.5 trillion yuan, with operating net income of 213.646 billion yuan and net profit attributable to shareholders of 68.576 billion yuan, showcasing strong financial performance despite a challenging economic environment [1][2]. Revenue and Profit Growth - CITIC Bank achieved a year-on-year increase in operating net income of 3.76% and a net profit growth of 2.33%, indicating a solid performance amidst a general slowdown in the banking sector [2]. - The bank maintained a balanced approach to growth, emphasizing "stable interest margins" and achieving the lowest net interest margin decline in five years, outperforming the market for three consecutive years [2]. Risk Management and Asset Quality - The bank's non-performing loan (NPL) ratio improved to 1.16%, a decrease of 0.02 percentage points from the beginning of the year, marking the best level in nearly a decade [3]. - The provision coverage ratio rose to 209.43%, an increase of 1.84 percentage points, representing the highest level in 11 years, reflecting enhanced risk management capabilities [3]. - CITIC Bank has implemented a comprehensive risk management strategy, focusing on both risk response and risk management to minimize value loss and enhance value creation [3]. Retail Risk Management - In anticipation of rising retail risk pressures in 2024, CITIC Bank has proactively strengthened its management mechanisms across various dimensions, including risk control and early intervention for non-performing assets [4]. - The bank's retail asset quality is showing signs of improvement, with expectations for continued stability in 2025 [4].

Investment Rating - The report maintains an "Accumulate" rating for CITIC Bank (601998.SH) with a current price of 7.25 CNY [1] Core Views - CITIC Bank's 2024 annual report shows a steady revenue growth of 3.8% year-on-year, with a net profit attributable to shareholders of 686 billion CNY, reflecting a 2.3% increase [4][5] - The bank's net interest income grew by 2.2%, while non-interest income increased by 7.4%, indicating a mixed performance in revenue sources [5][10] - The bank's asset quality remains stable, with a non-performing loan ratio of 1.16%, down 1 basis point from the previous quarter, and a provision coverage ratio above 200% [11][25] Summary by Sections Financial Performance - In 2024, CITIC Bank achieved operating income of 2136 billion CNY, with a weighted average return on equity of 9.79%, down 1.01 percentage points year-on-year [4][12] - The bank's total assets reached 9,532.72 billion CNY, with a year-on-year growth rate of 5.3% [27] Loan and Deposit Growth - By the end of 2024, the bank's interest-earning assets grew by 4.6% year-on-year, with a significant increase in loans and deposits [6][8] - The bank's loan balance increased by 4% year-on-year, with corporate loans growing by 7.8% and retail loans by 3.4% [6][7] Interest Margin and Non-Interest Income - The net interest margin for 2024 was reported at 1.77%, showing resilience compared to peers [9] - Non-interest income accounted for 31.3% of total revenue, with a notable increase in investment income [10][12] Asset Quality and Capital Adequacy - The bank's non-performing loan ratio decreased to 1.16%, and the provision coverage ratio was 209.4% [11][25] - Capital adequacy ratios showed mixed results, with the core tier one capital ratio at 9.72% [11][25] Earnings Forecast and Valuation - The report adjusts the EPS forecast for 2025-2026 to 1.25 CNY and 1.29 CNY, respectively, with a projected dividend payout ratio of over 30% for 2024 [12][27]

证券代码：601998 证券简称：中信银行 公告编号：临 2025-033 中信银行股份有限公司 关于 2025 年小型微型企业贷款专项金融债券（债券通） 发行完毕的公告 本行董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 根据中国人民银行《准予行政许可决定书》（银许准予决字〔2025〕第5号）， 中信银行股份有限公司（以下简称"本行"）获准发行金融债券，2025年金融债 券新增余额不超过600亿元，年末金融债券余额不超过4,000亿元。本行此次发行 的2025年小型微型企业贷款专项金融债券（债券通）（以下简称"本期债券"）已 于2025年3月26日簿记建档，并于2025年3月28日在全国银行间债券市场发行完毕。 本期债券发行规模为人民币300亿元，品种为3年期固定利率债券，票面利率 为1.92%。本期债券募集资金将专项用于发放小型微型企业贷款。 特此公告。 中信银行股份有限公司董事会 2025 年 3 月 28 日 ...

Group 1 - The core strategy of CITIC Bank focuses on five key areas: technology finance, green finance, inclusive finance, pension finance, and digital finance, which have created a differentiated competitive advantage [1] - As of the end of 2024, the balance of technology finance loans reached 564.4 billion yuan, a year-on-year increase of 19.3%, covering 89% of national specialized and innovative enterprises [1] - In the green finance sector, the balance of green loans exceeded 600.6 billion yuan, with a year-on-year growth of 31%, and the ESG rating improved to grade A [1] Group 2 - Inclusive finance loans are nearly 600 billion yuan, serving over 300,000 customers, with a stable non-performing loan ratio of around 1% [2] - The pension finance sector has seen significant progress, with pension fund custody exceeding 500 billion yuan and the number of pension account users reaching 5 million, a 60% increase since the beginning of the year [2] - Digital finance has supported the overall transformation, with key milestones achieved in the "Digital CITIC" initiative and upgrades to the core system [2]

Core Viewpoint - The article highlights the efforts of CITIC Bank Shanghai Branch in enhancing financing solutions for small and micro enterprises through a multi-dimensional system that integrates policy transmission, capacity building, and service upgrades [1][2][3]. Group 1: Mechanism Foundation - CITIC Bank Shanghai Branch has established a two-tier working team under the "Five Specialties and Five Strengthenings" framework to facilitate policy implementation [2]. - The bank conducts monthly specialized training and case sharing to convert regulatory policies into clear execution standards, creating a closed-loop management system [2]. - A dual-line operation strategy is employed to enhance service efficiency, including regular internal updates and external enterprise-bank connection activities [2]. Group 2: Innovative Solutions - A case study involving a photonics technology company illustrates the bank's approach to overcoming financing challenges through a specialized service team that assesses technology strength and market potential [3]. - The bank's focus extends beyond financial statements to include R&D investment, patent reserves, and market prospects, providing a new financing evaluation framework for technology-driven enterprises [3]. - CITIC Bank Shanghai Branch aims to implement financing coordination mechanisms aligned with national strategic directions to support innovation [3].

Core Viewpoint - CITIC Bank is advancing its artificial intelligence (AI) strategy, having deployed the DeepSeek R1 model in certain scenarios, achieving a 30% reduction in computing power usage. The bank aims for comprehensive business intelligence through vertical industry model development, particularly in investment research, trading, and risk control [1][2]. Group 1: AI Deployment and Strategy - CITIC Bank has implemented the DeepSeek R1 model in specific scenarios, resulting in a 30% savings in computing power [1]. - The bank has over 80 application scenarios in the exploration and development phase, with more than 40 already implemented and 16 actively in use, enhancing efficiency in customer interactions by over 50% in some cases [1]. - The bank's AI application development strategy will be officially released soon, focusing on making large model capabilities accessible and usable across various business scenarios [2]. Group 2: Technology Investment and Workforce - In 2024, CITIC Bank's investment in information technology reached 10.945 billion yuan, accounting for 5.12% of its operating income [2]. - The number of technology personnel at CITIC Bank increased by 3.66% year-on-year to 5,832, representing 8.91% of the total workforce [2]. - Over the past six years, the bank's cumulative technology investment has exceeded 50 billion yuan, ranking second among its peers in the joint-stock banking sector [2]. Group 3: Future Outlook - CITIC Bank is committed to a long-term investment strategy in technology, aiming to transition from partial to comprehensive digitalization [3]. - The bank believes that deep-level AI technology will accelerate the restructuring of the banking industry's ecosystem and value chain, bringing unprecedented changes and vitality to the sector [2].

Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company's overall performance meets expectations, with slight adjustments to profit forecasts for 2025-2027, projecting net profits of 695/709/721 million yuan, representing growth rates of 1.4%/1.9%/1.8% [3] - The current stock price corresponds to a PE ratio of 6.2/6.1/6.0x and a PB ratio of 0.55/0.52/0.49x, with a dividend rate slightly increased, resulting in a current dividend yield close to 5% [3] Financial Performance Summary - In 2024, the company achieved operating revenue of 213.6 billion yuan, a year-on-year increase of 3.8%, and a net profit attributable to shareholders of 68.6 billion yuan, up 2.3% year-on-year [1][4] - The total assets grew by 5.3% year-on-year to 9.53 trillion yuan, with deposits increasing by 7.3% to 5.86 trillion yuan, and loans rising by 4.0% to 5.72 trillion yuan [1][4] - The average ROE for the year was 9.8%, a decrease of 1.0 percentage points year-on-year [1] Interest Margin and Income - The net interest income for the year was 146.7 billion yuan, reflecting a year-on-year growth of 2.2%, with an average net interest margin of 1.77%, down 1 basis point year-on-year [2] - Fee income decreased by 4.0% year-on-year, primarily due to declines in agency sales and credit card fees, while other non-interest income grew by 20% [2] Asset Quality - The non-performing loan generation rate for 2024 was 1.14%, a decrease of 2 basis points year-on-year, indicating stable asset quality [2] - The year-end non-performing loan ratio was 1.16%, down 1 basis point from the previous quarter and down 2 basis points from the beginning of the year [2]

Core Viewpoint - CITIC Bank reported a positive performance for 2024, with revenue and net profit showing growth despite previous challenges [1] Financial Performance - In 2024, CITIC Bank achieved operating revenue of 213.646 billion yuan, an increase of 3.76% year-on-year [1] - The net profit attributable to shareholders reached 68.576 billion yuan, reflecting a year-on-year growth of 2.33% [1] Asset Quality Outlook - The asset quality management of CITIC Bank is strong, with stable non-performing loan and provision indicators [2] - The bank's retail asset quality is considered to be at a relatively good level compared to peers, despite an industry-wide trend of rising retail risks [2] - Measures taken since 2019 include tightening credit card approvals and focusing on mortgage and secured loans [2] Net Interest Margin Trends - As of the end of 2024, CITIC Bank's net interest margin stood at 1.77%, remaining stable year-on-year and outperforming the market for three consecutive years [3] - The bank anticipates significant downward pressure on net interest margins in 2025 due to a declining interest rate environment and adjustments in loan pricing [3] Dividend Policy - CITIC Bank aims to maintain a cash dividend payout ratio of over 30% from 2024 to 2026 [4][5] - The total cash dividend is projected to increase from 11.7 billion yuan in 2019 to 19.46 billion yuan in 2024, with the payout ratio rising from 25% to 30.5% of net profit [5]