Top China brokerage Citic posts 55% rise in 2021 profit on investment gains

[BEIJING/SHANGHAI] Citic Securities, China's biggest brokerage, reported on Monday (Mar 28) a 55.01 per cent rise in profit in 2021, led by strong gains in securities investments.

Net profit for the 12 months ended December rose to 23.1 billion yuan (S$4.9 billion) from 14.9 billion yuan a year earlier, on the strength of investments, the company said in a stock exchange filing.

Citic's revenue generated from stock investment jumped by 37.14 per cent to 18.4 billion yuan, while asset management fees rose by around 41.35 per cent to 13.5 billion yuan, the annual report showed.

The net profit results are largely in line with the preliminary results released in January.

"The capital market is booming," said the preliminary report.

"In 2021, the company invested in banks, asset management projects which steadily grew," the company added.

China's brokerages earned 191.12 billion yuan in net profit in 2021, up 21.32 per cent, while their revenue rose by 12.03 per cent, Securities Association of China data show.

Citic shares in Hong Kong closed down 0.34 per cent on Monday at HK$17.5 prior to the results being announced, compared with a 1.31 per cent rise in the broader market. REUTERS