China Construction Bank (939) Q3 2024 earnings summary

Executive summary

• Total assets reached RMB40.92 trillion by Q3 2024, up 6.87% from end-2023; net profit for the first three quarters was RMB257,112 million, up 0.7% year-over-year.

• Loans and advances totaled RMB25.7 trillion; deposits stood at RMB22.85 trillion.

• Operating income for the nine months was RMB552,347 million, down 3.20% year-over-year.

• The bank advanced high-quality development, focusing on technology, green, inclusive, pension, and digital finance.

Financial highlights

• Net profit increased by 0.65% year-over-year for the first three quarters.

• Net interest margin for the first three quarters was 1.52%, narrowing compared to last year but still leading peers.

• Net non-interest income rose 9.13% year-over-year to RMB111,530 million, driven by forex, bond, and equity investment gains.

• Cost-to-income ratio at 25.25%, maintaining a leading position among peers.

• Annualised ROA at 0.87%, ROE at 11.03%.

Outlook and guidance

• Profit level for the full year expected to remain stable, supported by favorable macroeconomic and sector policies.

• NIM expected to remain under pressure in 2025 due to lower LPR and deposit repricing, with efforts to optimize asset and liability structure.

• The bank continues to focus on supporting major national strategies, technological innovation, green transformation, and inclusive finance.

• Emphasis on digital transformation and expanding digital finance platforms.

• Loan demand anticipated to rally as new policies take effect, with balanced and orderly credit growth.