Stock Track | CITIC Bank Shares Plunge as Weaker Interest Income, Fees Weigh on Profits

Stock Track08-29

Shares of CITIC Bank Corporation Ltd. tumbled more than 6% in intraday trading on Wednesday, as the Chinese lender's first-half financial results disappointed investors, weighed down by lower net interest income and fee income.

For the six months ended June 30, CITIC Bank reported a 1.6% year-over-year decline in net profit to CNY 35.49 billion (USD 4.98 billion). The bank's net interest income, a key driver of revenue, fell 0.8% to CNY 72.61 billion, while net fee and commission income dropped a significant 14% to CNY 16.35 billion.

The weaker profitability figures, driven by pressure on CITIC Bank's top-line revenues from the decline in interest income and fees, triggered a sell-off in the lender's shares. Despite a slight narrowing of 0.8% in credit and other asset impairment losses, the negative impact on earnings disappointed investors, prompting a sharp decline in the stock's price intraday.

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