China CITIC Bank (0998.HK/601998.SS, Not Covered) : Asia Financials Corporate Day Takeaways

Research evidence excerpt

China CITIC Bank (0998.HK/601998.SS, Not Covered) : Asia Financials Corporate Day Takeaways

Goldman Sachs

contraction of around 5 bps. The outlook for 2027 will depend on changes in the real

economy. There is an ongoing improvement of NIM, but a reversal has not yet been

seen.

2. Loan

n The second quarter is historically a slow season for lending. The overall situation

since 2Q26 has been in line with the bank’s expectations: the decline in corporate

lending was better than in previous years; retail lending is relatively weak, with

growth gradually slowing or even turning negative since 2H25.

n The company maintains the relatively cautious guidance of full year credit growth

from the beginning of the year: Rmb 300bn for corporate loans, with retail loan

growth adjusted dynamically based on demand.

n Significant credit demand has been released from “New Quality Productive Forces”

(e.g., semiconductors, AI, etc.), while both existing and new lending are concentrated

in traditional sectors such as commercial leasing services, water, electricity, and gas

utilities, and manufacturing.

n Retail loan pricing is stable; corporate loan pricing is under some downward

pressure, but the decline is more gradual than in previous years, depending on the

real economy and the low-interest-rate market environment.

3. Deposit

n More time deposit matured in 1H26, and the effect of lowering liability costs will

persist throughout the year, with some left to mature in 2027.

n The deposit structure is bifurcating: 1) There is still significant demand for time

deposits, such as 3-year term deposits, which remain an important asset allocation

choice for risk aversion clients; 2) A trend towards liquidity was seen among clients

with higher risk appetite, who prefer short-duration products.