Halister News

(Bloomberg) -- Chongqing Rural Commercial Bank Co. jumps most since Oct. 3 in Hong Kong after posting 3Q results that Credit Suisse Group AG said were the best among Chinese banks in its coverage.

• Shares jump as much as 4.3%; up 2.6% as of midday break, leading gains among H-share banks
• NOTE: Net income rose 11% y/y to 2.31b yuan ($348m), according to statement to Hong Kong’s stock exchange
• Net interest income +16% y/y driven by 11% loan growth and flat net interest margin, Credit Suisse analyst Sanjay Jain writes in Nov. 1 note; net fee income +17% y/y thanks to growth in fees for wealth management and agency business; operating costs -2% y/y on stronger controls of daily expenses and budget management
• Results “beat our estimates for all earnings drivers,” Jain says
• Location advantage of Chongqing continues; maintain outperform, PT HK$6
• Huatai Financial Holdings (Hong Kong) Ltd. analysts led by Chen Shujin add that strong 3Q results “hit all four key H-share China bank results indicators watched by the market,” namely: NIM, NPL ratio, pre-provision operating profit and net profit growth
• Top pick among municipal banks
• Concerns on asset quality largely eased; strong buy recommendation, PT HK$6.56

To contact the reporter on this story: Will Davies in Hong Kong at wdavies13@bloomberg.net To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Philip Glamann