HK Stock Market Move | CITIC BANK (00998) rose nearly 2%, with its profit growth trend ahead of management guidance; the potential listing of Yangtze Memory Technologies may contribute additional profit upside.

CITIC BANK (00998) rose nearly 2% in late trading, up 1.99% as of press time at HK$8.71, with a turnover of HK$235 million. On the news front, CITIC BANK announced that for January-September 2026, it achieved a net profit attributable to shareholders of the bank of RMB55.293 billion, up 3.56% year on year. Operating income reached RMB163.601 billion, up 4.16% year on year. Among this, net interest income was RMB109.450 billion, up 1.62% year on year; net interest margin was 1.60%, down 3BPs year on year; non-interest net income was RMB54.151 billion, up 9.70% year on year. Citi's latest research report noted that CITIC BANK's solid third-quarter results benefited from improved cost efficiency, with its profit growth trend ahead of management guidance. The bank believes third-quarter pre-provision operating profit growth was higher than its expectations, while profit growth was broadly in line with market expectations. Looking ahead, the bank believes CITIC BANK has high visibility to outperform management's guidance of approximately 3% profit growth for 2026 (already up 3.6% year on year in the first nine months). In addition, if Yangtze Memory Technologies Holdings potentially lists in the fourth quarter of 2026, CITIC BANK's holding of approximately 4% to 5% pre-IPO equity may bring additional room for profit upgrades.