China Construction Bank is set to release its third-quarter financial results on Thursday. Here are the key details you need to know:
Net Profit Forecast
Analysts predict that China Construction Bank’s net profit for the three months ending on September 30 will drop by 21% to 67.31 billion yuan ($9.21 billion). This is a significant decline compared to the net profit of 85.64 billion yuan in the same period last year.
Important Factors to Watch
Interest Income: In the first half of the year, the bank’s net interest income decreased by 1.7% to 312.185 billion yuan due to lower market interest rates. Investors will be keenly observing any further decline in this major source of the bank’s earnings.
Impairment Losses: The credit impairment losses in the first half of the year decreased by 7.6% to 95.41 billion yuan, indicating a recovery in the economy from the pandemic-related slump. The size of impairment losses will be closely monitored by investors.
Asset Quality: The non-performing loan ratio slightly decreased to 1.37% by the end of June, compared to 1.38% at the end of 2022. However, the ratio for the real estate industry increased to 4.76%, raising concerns about loan quality in this sector. Investors will be on the lookout for any further deterioration in asset quality, particularly in real estate.
