CITIC Securities' (SHA:600030, HKG:6030) attributable profit rose 33% in the nine months ended Sept. 30 as a surge in net interest and fee income and a reversal of credit losses offset a decline in investment income.
The investment bank and securities brokerage logged an attributable profit of 31 billion yuan, up from 23.4 billion yuan, after adjustments, in the year-ago period, according to a Monday filing with the Hong Kong bourse. Earnings per share rose to 2.01 yuan from 1.53 yuan.
Operating revenue for the period jumped 19% to 66.6 billion yuan from 56.1 billion yuan a year earlier.
Net interest income surged 320% to 3.22 billion yuan on an increase in interest income from cash and bank balances, settlement deposits, and from margin financing and securities lending. Fees and commissions jumped 33% to 32.6 billion yuan following a rise in fees from brokerage, investment banking, and asset management.
Expected credit losses saw a reversal to 436.9 million yuan during the first three quarters from a loss of 648.1 million yuan on reverse repurchase agreements and margin accounts.
Investment income fell 45% to 18 billion yuan from 32.8 billion yuan on lower income from a disposal of financial instruments. The fall also comes amid a selloff of artificial intelligence-related stocks, Reuters reported separately.
For the third quarter alone, attributable profit fell 20% to 7.68 billion yuan. Earnings per share slid to 0.48 yuan from 0.64 yuan, below a consensus estimate of 0.77 yuan compiled by Factset.
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