Investing.com — stock rose 3.2% to HK$50.60 on Monday after the bank delivered an interim revenue beat that overshadowed a slight earnings-per-share shortfall.
Net operating income rose 4.83% year-on-year to CNY 178.135 billion, surpassing consensus estimates, while net profit attributable to shareholders climbed 2.02% to CNY 76.45 billion. Investors appeared to focus on the top-line strength and the bank’s forward guidance rather than the modest EPS miss of roughly 1.9% against forecasts.
A standout highlight from the earnings call was the performance of the wealth management business, where fee income surged 18.44% year-on-year to CNY 24.7 billion — its best showing in five years. Equally important for market sentiment, management indicated that the most difficult phase of net interest margin compression may be behind the bank, a signal that helped ease one of the key overhangs on the stock. Asset quality also remained firm, with the non-performing loan ratio unchanged at 0.94% and allowance coverage holding at a robust 385%.
Upbeat earnings from also added to optimism over Chinese bank stocks, helping them advance past a 0.8% drop in the Hang Seng index.
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