Citi Places CQRC BANK on 90-Day Positive Catalyst Watch List, Reiterates 'Buy' Rating

Stock News
02/06

Citi has issued a research report assigning CQRC BANK a target price of HK$7.53 and maintaining a "Buy" rating. The bank has been included in Citi's 90-day positive catalyst watch list. The report expresses confidence that the bank's upcoming Q4 2025 results, expected to be announced on March 25, are likely to exceed market forecasts. Citi anticipates a 16% year-on-year increase in quarterly profit, implying a 5% full-year profit growth for the previous year, which is approximately 1% higher than market consensus. This projected performance is attributed to robust loan growth and stable net interest margins. Furthermore, Citi forecasts that CQRC BANK's revenue and profit growth will accelerate to 5% and 10% year-on-year, respectively, this year. This acceleration is expected to be driven by strong corporate loan growth, stable net interest margins, and a significant increase in bancassurance, wealth management, and fee income related to precious metals, which is projected to double compared to the previous year.

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