CITIC Financial Asset Management Co., Ltd. (“CITIC FAMC”) released its 2026 interim results, highlighting stronger profitability and improved asset quality.
Revenue and Earnings • Total income reached USD 14.89 billion for 1H 2026. Excluding a high base of one-off gains in 1H 2025, underlying revenue grew 36.6%. • Net profit climbed 18.60% year on year to USD 6.53 billion, with profit attributable to shareholders up 11.30% to USD 6.86 billion. • Annualised ROAE improved to 21.4%, while annualised ROAA edged up to 1.2%. • Basic earnings per share increased to RMB 0.075 (1H 2025: RMB 0.066).
Cost and Credit Trends • Interest expense fell 9.60% to USD 13.01 billion, reflecting a 16-bp decline in average funding cost since year-end. • Impairment losses under the expected credit loss model dropped 67.10% to USD 5.54 billion, aided by tighter risk controls. • Operating expenses decreased 9.70%, lifting cost efficiency.
Balance-Sheet Expansion • Total assets expanded 6.20% since end-2025 to USD 1.12 trillion. • Financial assets at fair value through profit or loss rose 5.20% to USD 407.59 billion, while deposits with financial institutions jumped 47.60% to USD 109.99 billion. • Borrowings grew 8.00% to USD 849.38 billion, and bonds and notes outstanding increased 5.40% to USD 171.90 billion.
Segment Performance • Distressed Asset Management contributed USD 26.74 billion in total income (103.1% of group total) and USD 10.54 billion in profit before tax. • Asset Management & Investment recorded USD 61.00 million in income and a pre-tax loss of USD 4.59 billion, weighed by market volatility. • Acquisition-and-disposal business added USD 22.95 billion in new assets; bailout & revitalisation investments totalled USD 40.24 billion, lifting that portfolio to USD 202.09 billion.
Capital and Liquidity • Capital adequacy ratio stood at 15.71% at 30 June 2026 (31 December 2025: 16.52%). • The leverage ratio was 7.7:1, marginally below year-end 2025’s 7.8:1. • In July and August 2026, CITIC FAMC completed RMB 15.00 billion of asset-backed securities issuances and renewals, reinforcing funding diversity post-reporting period.
Outlook Management expects China’s non-performing asset market to benefit from ongoing structural reforms, continued macro support for the real economy, and expanded policy space for asset revitalisation. CITIC FAMC plans to intensify focus on its core distressed asset franchise, enhance risk resolution capabilities, and optimise its balance-sheet structure to sustain high-quality growth over the remainder of 2026.