Huafu Securities: Initiates a "buy" rating on CITIC Bank, optimistic about its future investment opportunities.

Huafu Securities research report pointed out that CITIC Bank has a solid foundation in its corporate business and its operations have entered a period of recovery. In the first quarter of 2026, it achieved operating income of 54.649 billion yuan, a year-on-year increase of 5.23%; net profit attributable to shareholders was 20.098 billion yuan, a year-on-year increase of 3.02%, ranking second in terms of revenue and profit growth among commercial banks. Non-interest income performed well, with non-interest income in the first quarter increasing by 13.1% year-on-year, accounting for 33.63% of revenue. Net fee and commission income increased by 6.99% year-on-year, with continued strength in wealth management business; other non-interest income increased by 22.15% year-on-year, fair value changes in gains and losses increased by 2.838 billion yuan year-on-year, and investment trading capabilities significantly improved. Strategic areas such as manufacturing, green credit, and technology finance maintained strong growth momentum, corporate loan non-performing ratio decreased to 0.94% from the beginning of the year. Asset quality is stable and improving, with high dividend providing sufficient safety margin. It is expected that CITIC Bank will have significant potential for valuation improvement in the future, optimistic about its future investment opportunities, and initiate coverage with a "buy" rating.