31 October 2008

Good earnings growth, bad balance sheet contraction (China CITIC Bank-H)

3Q08 results strong, the highest YoY growth among peers
CNCB’s 3Q08 earnings grew by 137% YoY to RMB12.47bn, accounting for ~82%
of our FY08E estimates. The exceptionally strong bottom line growth was partly
distorted by its high effective tax rate in 9mth-2007 (44%). On a pre-tax level,
earnings grew by 78% YoY, still higher than H-share peers (CMB: 70%).