CITIC Securities Co., Ltd. Q4 net profit is 4.905 billion yuan, investment business internationalization accelerates, plans to distribute 2.80 yuan for every 10 shares | Financial Report Insights

The "big brother" of securities firms, CITIC Securities, has released its 2024 performance report, achieving double growth in revenue and profit. Revenue increased by 23.95% year-on-year, and net profit attributable to shareholders increased by 10.06%, with a net profit of 4.905 billion yuan in the fourth quarter. Notably, both investment banking and financial market businesses achieved significant growth.

On Wednesday, CITIC Securities announced its fourth quarter and full-year results for 2024, specifically:

Financial performance: Annual operating revenue was 63.789 billion yuan, a year-on-year increase of 6.20%; net profit attributable to shareholders was 21.704 billion yuan, a year-on-year increase of 10.06%; basic earnings per share were 1.41 yuan, a year-on-year increase of 8.46%; the weighted average return on net assets was 8.09%, an increase of 0.28 percentage points year-on-year;

In the fourth quarter alone, operating revenue reached 17.648 billion yuan, and net profit was 4.905 billion yuan. Although this represents a decline compared to previous quarters, it remains at a high level;

Asset scale: As of the end of 2024, the group's total assets amounted to 1,710.711 billion yuan, a year-on-year increase of 17.71%; equity attributable to shareholders was 293.109 billion yuan, a year-on-year increase of 9.03%.

It is worth mentioning that CITIC Securities plans to distribute a cash dividend of 2.80 yuan (including tax) for every 10 shares this period. CITIC noted in its financial report:

The wave of mergers and acquisitions in the securities industry has accelerated, with an increase in the frequency and intensity of industry consolidation. Top-down driven mergers and acquisitions have become a dominant force, and the trend of shortening the merger cycle is expected to continue into 2025. Competition among leading securities firms is intensifying, and the concentration of the securities industry is increasing. Leading securities firms are accelerating their overseas business layout, increasing investments in emerging markets such as Southeast Asia and the Middle East, focusing on core areas such as financing for domestic enterprises going abroad, cross-border mergers and acquisitions, and cross-border wealth management.

Rapid Development of International Investment Banking Business and Continuous Growth of Wealth Management Client Base

In terms of business segments, CITIC Securities' brokerage business, asset management business, and securities investment business accounted for 26%, 18%, and 38% respectively; the securities underwriting business accounted for 6%, with operating revenue declining over 35% compared to the previous year.

In investment banking, despite an overall decline in the domestic equity financing market, CITIC Securities has maintained its market leadership. The company completed 55 main underwriting projects for A-shares, with an underwriting scale of 70.359 billion yuan, capturing a market share of 21.87%. The underwriting scale for IPOs and refinancing ranked first in the market. In the bond business, it underwrote 5,088 domestic bonds, with an underwriting scale of 2,091.237 billion yuan, a year-on-year increase of 9.49%, becoming the first securities firm in the industry to achieve an annual bond underwriting scale exceeding 2 trillion yuan The company's international business is rapidly developing, with its Hong Kong stock equity financing business ranking second in the market and its offshore bond business ranking first. It has successfully completed diversified transactions such as IPOs, placements, and rights issues in multiple markets including the United States, India, the Philippines, and Malaysia, reflecting the strategic effectiveness of its globalization layout.

In the wealth management sector, as of the end of the reporting period, the number of clients exceeded 15.8 million, an increase of 12% compared to the end of the previous year; the scale of client assets under custody surpassed 12 trillion yuan, growing by 18% year-on-year. The sales scale and revenue of the company's overseas wealth management products doubled, and its global layout continued to advance.

In terms of institutional stock brokerage business, the company maintained its market-leading position, ranking first in public fund commission income from sub-accounts, with over 300 QFI trading clients. The market share of its overseas institutional stock brokerage business remained leading in the Asia-Pacific region.

The company's financial market business achieved revenue of 24.04 billion yuan in its securities investment business through diversified strategic layouts, representing a year-on-year growth of 23.95%. The company continues to optimize its client service capabilities, maintaining a leading position in margin financing and stock pledge business, while the quality of credit assets continues to improve.

In the asset management sector, the scale steadily increased, with a total asset management scale of 1,542.446 billion yuan as of the end of the reporting period. The market share of private equity asset management business reached 13.43%, ranking first in the industry. Huaxia Fund, as a holding subsidiary, maintained its leading position in ETF scale, with strong growth in bond funds and money market funds.

In addition, the company continuously enhances its global risk management capabilities. As of the end of the reporting period, the company's net capital was 142,486,255,992.89 yuan, with a risk coverage ratio of 213.06%, and both liquidity coverage ratio and net stable funding ratio remained at a high level