CEB BANK (06818) saw its stock price plummet by 5.04% during Friday's trading session, as investors reacted to the bank's recently released earnings report. The sharp decline came after the bank reported disappointing financial results for the third quarter and the first nine months of the year.
According to the earnings release, CEB BANK's cumulative revenue for the first three quarters declined by 7.9% year-on-year, while net profit attributable to shareholders dropped by 3.6%. The third quarter performance was particularly concerning, with revenue falling 13.0% and quarterly net profit declining by 11.0% compared to the same period last year. Analysts noted that these results slightly missed market expectations, primarily due to pressure from fair value fluctuations caused by bond market volatility.
Adding to investor concerns, CEB BANK reported a slight deterioration in asset quality. As of September-end, the bank's non-performing loans increased by RMB 1.46 billion from the end of 2022, reaching RMB 50.71 billion. The non-performing loan ratio edged up by 0.01 percentage points to 1.26%, while the provision coverage ratio declined by 11.67 percentage points to 168.92%. Despite these challenges, the bank's total assets grew by 3.72% from the previous year-end, reaching RMB 7.22 trillion.
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