Global Bank Equity Specialist, Creative Portfolios

Paul Hollingworth

Global Bank Equity Specialist

Creative Portfolios

Quantitative Analysis

<a href="https://www.smartkarma.com/entities/china-citic-bank-corp-ltd" target="_blank" data-smartkarma-citation="entities:24586:1" rel="noopener">China Citic Bank Corp (601998 CH)</a>combines benign fundamental momentum with a bargain basement valuation.Regarding valuation, total Return Ratio is high at 3.37x while FV, P/Book, Dividend and Earnings Yield stand at 7%, 0.46%, 5.75% and 23.0%, respectively.A PH Score of 9.1 provides a tailwind for shares. Fundamental trends are constructive with gains in Efficiency, Margin, Asset Quality, and Liquidity with Provisioning, Profitability, and Capitalisation generally stable. The low valuation variable adds to the overall value-quality gauge.In recent years, China Citic Bank has made headway on diverse fronts: growth of its consumer base, strong in mortgages, credit cards and auto finance; a  focus within corporate banking on technology and medicine as well as infra: a concerted initiative to reduce NPLs via recovery and disposals and better recognise problem loans within say SMLs; development of private banking and asset management; creation of a regional business model based around Beijing, Shanghai, Guangzhou, Shenzhen, Xi'an and Nanjing;  installation of a lighter financial model; evolution of e-banking and a mobile presence; building an AI capability with fintech innovation investment; a defined international payments and forex market making offering; and a burgeoning overseas financing business, supporting clients such as Alibaba.

China Citic Bank Corp (601998 CH)combines benign fundamental momentum with a bargain basement valuation.Regarding valuation, total Return Ratio is high at 3.37x while FV, P/Book, Dividend and Earnings Yield stand at 7%, 0.46%, 5.75% and 23.0%, respectively.A PH Score of 9.1 provides a tailwind for shares. Fundamental trends are constructive with gains in Efficiency, Margin, Asset Quality, and Liquidity with Provisioning, Profitability, and Capitalisation generally stable. The low valuation variable adds to the overall value-quality gauge.In recent years, China Citic Bank has made headway on diverse fronts: growth of its consumer base, strong in mortgages, credit cards and auto finance; a  focus within corporate banking on technology and medicine as well as infra: a concerted initiative to reduce NPLs via recovery and disposals and better recognise problem loans within say SMLs; development of private banking and asset management; creation of a regional business model based around Beijing, Shanghai, Guangzhou, Shenzhen, Xi'an and Nanjing;  installation of a lighter financial model; evolution of e-banking and a mobile presence; building an AI capability with fintech innovation investment; a defined international payments and forex market making offering; and a burgeoning overseas financing business, supporting clients such as Alibaba.

China Citic Bank: Cheap + Benign Trends