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CITIC Ltd. First-Half Net Profit Rose 64%

   By Clarence Leong 
 

CITIC Ltd.'s first-half net profit rose 64% to 44.175 billion Hong Kong dollars (US$5.67 billion), as the conglomerate recovered from the Covid-19 pandemic.

The Chinese state-owned company, which has businesses spanning financial services, manufacturing and real-estate, posted HK$352.92 billion in total revenue for the period, a 38% increase from a year earlier, it said Friday.

CITIC's banking unit, CITIC Bank, recorded a 14% rise in net profit. Its asset quality and operational effectiveness improved markedly, and its nonperforming loan ratio fell for the first time in nearly 10 years.

The company proposed a dividend payment of HK$0.15 a share for the first half, compared with HK$0.10 last year.

Nevertheless, CITIC said the pandemic could still hurt the economies it operates in, curbing profitability. The company will continue to reduce costs and grow revenue so as to bolster its resilience, it said.

CITIC also said it is "moving forward on all fronts" to establish a new financial holding company, after getting approval from China's central bank.

 

Write to Clarence Leong at clarence.leong@wsj.com

 

(END) Dow Jones Newswires

August 27, 2021 01:03 ET (05:03 GMT)

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