UBS: assigned a "buy" rating to CITIC BANK (00998) with a target price of 6.1 Hong Kong dollars.

UBS released a research report, stating that it has a "buy" rating for CITIC BANK (00998). The company announced its preliminary performance last year, with a positive surprise in net profit and asset growth. It is expected that the market will react positively to its performance, with an H-share target price of 6.1 Hong Kong dollars. The report stated that CITIC BANK's revenue last year increased by 3.8% year-on-year, roughly in line with the growth trajectory in the first three quarters of last year. Net profit growth accelerated from 0.8% in the first three quarters to 2.3% for the whole year, far exceeding the bank's previous expectations. This may be due to a decrease in impairment expenses in the fourth quarter of last year. The non-performing loan coverage ratio decreased by 6.57 percentage points, but the non-performing loan ratio remained stable at 1.16% on a quarterly basis. Asset growth also accelerated from 3.8% in the first three quarters to 5.9% for the whole year.