By the middle of 2009, the Net profit reaches 7.047 Billion, while the EPS reaches 0.18 yuan.
Income from main business & Profit of trade
Net profit & Earnings Per Share(EPS)
2. 3.
4.
Growth of the main business income and margin is low
200
The fees income is growing fast
NPL ratio decreased 0.37%
10 9.8 1.60% 1.40% 1.20% 1.00% 0.80% 9.2 0.60% 0.40% 0.20% 0.00% 2008-12-31 NPL(billion) 2009-6-31 NPL ratio 9
Category
Summary
Introduction:
China CITIC Bank is a state-owned and operated bank headquartered in Beijing, People's Republic of China.
Contents:
We will use the SWOT and 4Ps Frameworks to analyze the opportunities and challenges of China CITIC Bank, the advantages and disadvantages in its marketing.
About China Citic Bank
B- AUG27,2009: China Citic Bank Corp. first-half net profit fell 16% from a year earlier because of a significant drop in net interest income. C-Jul13,2009: ET Solar Group Corp., a Nanjing-based solar farm EPC provider and integrated manufacturer of photovoltaic products including ingots, wafers, modules, and tracking systems announced a RMB100 million credit facility with China CITIC Bank.
39.2 29.1 28.8 32.9
1.91 1.52 1.38 1.19
2.06 -----1.94 1.58
Pudong Development Bank
China Merchants Bank Minsheng bank Huaxia Bank China Citic Bank PS: Data from 2005 Average of International Advanced Bank
SWOT Analysis- Strength
Strength
Source: 中信银行
British banker magazine announced the “World Bank's brand 500” ranking, because the China CITIC Bank’s good operating performance and profitability it came in 99th for the first time entered the list for the top 100, reaching a major breakthrough in brand building
Product
Main business-RMB deposits and loans are growing fast, but Reduced interest rate spreads make the profit of main business reduced. Rapidly developed intermediary business decrease the business risk Strengthening the credit card business and optimizing the customer &credit structure can make it react the recession effectively Providing comprehensive financial business, e.g. underwriting medium-term notes and issuing Public Trust Financial Products
17.0
15.6 19.6 14.1 13.28 31 ． 5
0.45
0.57 0.55 0.42 0.56 1.48
1.97
2.58 1.28 3.04 4.11 Source: China CITIC Bank 1.25
Average of Internal Listed Bank
16.1
0.49
Net profit
EPS
By the middle of 2009, the Total assets reaches 1401.48 Billion, while Liability reaches 1302.41 Billion.
Stockholders equity & Unappropriated profit
E-Apr29,2009:China CITIC Bank Corp. announced that the Company will pay cash dividend of RMB 0.853(before tax) to shareholders for every 10 shares they hold.
Growth rate （ % ）
Source:新浪财经
SWOT Analysis- Weakness
Compared to CMBC, ICBC, CBC and BC, China CITIC Bank has a disadvantage in its book value and EPS.
Source:新浪财经
SWOT Analysis- Threat
3.72
About China Citic Bank
Enterprise Strategy
About China Citic Bank
By the middle of 2009, the Income from main business reaches 17.1 Billion, while the profit of trade reaches 9.33 Billion.
I-Jan19,2009: Dow Jones reported that China CITIC Bank Cor. expects its fiscal 2008 net profit to rise by about 60% on improvements in its operations. According to Reuters Estimates, analysts were expecting the Company to report net profit of CNY15.13 billion for the same period.
With the increasing competitiveness of the banking sector, China CITIC Bank has to face the enormous challenges from the foreign banks and State-owned banks
Source:
About China Citic Bank
Competitive situation
NAME Return of Capital Return On Assets Bad Loan Ratio
Citibank The Chartered Bank HSBC Royal Bank of Scotland
SWOT Analysis- Strength
Compared to the average level of banking, China CITIC Bank’s EPS and PE is high
Source:新浪财经
SWOT Analysis- Weakness
The ratio of NPL is higher while the capital adequacy ratio is low 2008 2007 2006 2005 2004
Threat
The challenges of market competition The challenge of changing customer needs The increase pressure of Shareholders’ return on investment and bank strategic
Source:新浪财经
4Ps Analysis
Price
1. 2. 3. Flexible Loan Interest Relative high deposit interest compared to state-owned banks Relative low fees in Intermediary Business, e.g. Bank card fees, agent fees, guarantee fees, consultants and consulting fees and so on 1.