(Yicai Global) March 24 -- China Citic Bank’s stock price rose after the lender reported an 11.6 percent increase in net profit last year thanks to the growth in interest-bearing assets and non-interest income.

After gaining by as much as 2.5 percent in Shanghai this afternoon, Citic Bank [SHA: 601998}finished 0.9 percent higher at CNY5.57 (81 US cents) a share today.

Net profit was CNY62.1 billion (USD9.1 billion) in the 12 months ended Dec. 31, versus CNY55.6 billion a year earlier, the Beijing-based bank said in an annual earnings report released yesterday. Operating revenue rose 3.3 percent to CNY211.4 billion (USD30.9 billion).

Citic Bank reported CNY150.6 billion of net interest income for 2022, accounting for more than 70 percent of the total revenue, up 1.9 percent from the previous year, as the scale of interest-bearing assets rose, offsetting a decline in average yield.

Non-interest net income rose 7.2 percent to CNY60.7 billion, mainly because net income from service charges and commissions rose 3.4 percent to CNY37.1 billion buoyed by a 10 percent increase in commissions on custody and other entrusted businesses, despite income from agent trust products and funds falling. 

The banking industry’s net interest margins were under pressure last year because of falling interest rates and other factors, Citic Bank noted. Its margin fell 0.08 point to 1.97 percent in 2022 from the year prior.

Deposits at the bank jumped 7.7 percent to CNY5.1 trillion (USD745 billion) in the year. Personal deposits soared 33 percent to CNY1.3 trillion. Funds in fixed-term and current accounts rose 42 percent and 13 percent, respectively.

At the end of 2022, Citic Bank’s total assets stood at CNY8.6 trillion and loans and advances at CNY5.2 trillion both up 6 percent from a year earlier.

The balance of home mortgages at the lender was CNY944.1 billion in 2022, basically unchanged from 2021. The annual growth rates in 2021 and 2020 were 5.1 percent and 18.1 percent, respectively.

Citic Bank’s non-performing loan balance and bad loan ratio both fell, as its capital adequacy ratio and tier-one CAR slid 0.4 percent and 0.3 percent.

Editors: Shi Yi, Futura Costaglione