China Citic Bank's Profitability Levels Signal Greater Stability Than Peers -- Market Talk

Dow Jones05-20 16:59

0859 GMT - China Citic Bank's consistent profitability levels signal greater stability compared with its peers, says Moody's Ratings in a report. The Chinese lender's return on average assets--a measure of profitability--could remain at around 0.73% over the next 12 to 18 months, Moody's says, noting that it has remained within 0.73%-0.77% over the past four years. This is supported by Citic Bank's smaller contraction in net interest margin, balanced revenue structure and steady credit costs, the ratings company says. "While credit costs may remain elevated due to rising retail asset risk, the bank's solid loan loss buffers will help mitigate earnings volatility," it adds. Moody's revises its outlook on the lender's long-term deposit ratings to positive from stable. (megan.cheah@wsj.com)

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May 20, 2026 04:59 ET (08:59 GMT)

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