JP Morgan: CITIC BANK (00998) fourth quarter performance slightly beats expectations, rating remains "hold"

JPMorgan Chase released a research report stating that it is expected that CITIC BANK (00998) will see a positive growth in revenue in 2026, with stable growth in annual profits, and reiterated its "overweight" rating on its H shares. Currently, CITIC BANK's H shares are trading at 0.45 times the forecasted 2026 price-to-book ratio, corresponding to an ROE of 9.1% and a dividend yield of 5.9%, and the valuation is still relatively attractive. The target price is HK$8.85. JPMorgan believes that CITIC BANK's net profit for the full year of 2025 increased by 3% year-on-year, meeting JPMorgan's expectations but exceeding market expectations by 2%. In the fourth quarter, net profit increased by 3%, but operating profit performance exceeded expectations, with a year-on-year growth of 9%, exceeding the fourth quarter estimates of both the bank and the market by 5% and 2%, bringing a pleasant surprise.