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Business and Financial Review

Financial Services

Our financial business spans the banking, trust, insurance and securities sectors. CITIC Limited offers a full-service platform to provide integrated financial solutions for customers.

Major subsidiaries

  • CITIC Bank is a fast-growing commercial bank providing corporate banking, retail banking and financial markets services.
  • CITIC Trust is the largest trust company in China in terms of total assets under management.
  • CITIC-Prudential is a joint venture between CITIC Corporation and Prudential that provides life, health, accident insurance as well as other reinsurance services.
  • CITIC Securities is the largest securities company in China, with businesses covering investment banking, brokerage, securities trading and asset management.

In 2016, CITIC Limited’s financial services business recorded revenue of HK$187.5 billion, a drop of 9% from last year. Profit attributable to ordinary shareholders was HK$38.4 billion. Excluding the impact of a one-off equity disposal gain and new share placement by CITIC Securities in 2015 as well as the decrease of CITIC Limited’s average shareholding of CITIC Bank and the depreciation of Renminbi that affected our reporting currency in Hong Kong dollar, profit attributable to ordinary shareholders was 3% lower than last year.

Affected by the replacement of the business tax with a value-added tax, the revenue from the banking business nevertheless recorded growth that was 6% higher than last year. The income mix was further improved with growing non-interest income while total interest-earning assets continued to increase. However, an increased impairment for non-performing loans dragged down the bottom line, which increased slightly by 1% compared with 2015. Sluggish equity markets in China, meanwhile, had a significant impact on the greatly reduced revenue and net profit performance of CITIC Securities. Net profit at CITIC Trust largely remained stable compared with 2015. Throughout the year, premium income at CITIC-Prudential grew steadily, leading to an overall net profit increase of 83%.