Will the dividend payout exceed 2 yuan next year? CITIC Jin Gao Lixue: There is a chance
CITIC Financial reported a record high profit in the first three quarters of 2024. The net profit reached NT$58.65 billion, with earnings per share (EPS) at NT$2.95. General Manager Gao Lixu discussed the potential for next year’s dividend to exceed NT$2, citing the company’s growth and capacity to pay dividends. However, he emphasized that factors such as capital needs for expansion and subsidiary profits will influence the final decision.
Gao stated that CITIC Bank is working to strengthen its foothold in Cambodia and Malaysia. He noted steady growth in its overseas branches, particularly in Hong Kong and Singapore, where profits have increased by 1.3% and 20%, respectively. The bank’s mortgage business also showed momentum, focusing on serving current clients while being cautious with new borrowers.
Regarding potential impacts from future US policies, Gao highlighted concerns about tariffs and trade uncertainties. However, he mentioned that reduced regulations could benefit the tech and financial sectors. CITIC Financial anticipates the US Federal Reserve will cut interest rates by 1% next year.
How is CITIC Financial planning to balance shareholder dividends with capital needs in the coming years?
Interview with Gao Lixu, General Manager of CITIC Financial: Insights on Record Profits and Future Strategies
News Directory 3: CITIC Financial has announced a record net profit of NT$58.65 billion for the first three quarters of 2024. Can you elaborate on the factors contributing to this impressive performance?
Gao Lixu: Our strong performance is attributable to several key factors, including enhanced operational efficiency and growth in various sectors of our banking portfolio. Our overseas branches, especially in Hong Kong and Singapore, have shown remarkable profitability, which has positively influenced our overall financial results.
News Directory 3: You mentioned potential dividends exceeding NT$2 next year. What influences this decision, and how does the company plan to manage its capital needs?
Gao Lixu: While we have the capacity to pay dividends, the final decision will depend on various factors, including our capital requirements for expansion and the profitability of our subsidiaries. We are committed to balancing shareholder returns with sustainable growth strategies.
News Directory 3: CITIC Bank is focused on expanding in Cambodia and Malaysia. What achievements have you seen in these markets?
Gao Lixu: Our strategy in Cambodia and Malaysia is progressing well. We are establishing a stronger presence and have seen positive growth in both markets. Our teams are dedicated to building long-lasting relationships and adapting to the local market dynamics to ensure continued success.
News Directory 3: With the current global economic climate, how do you anticipate US policies will impact CITIC Financial’s operations?
Gao Lixu: We are cautious about the potential impacts of tariffs and trade uncertainties. However, we also see opportunities; for instance, a reduction in regulations might foster growth in the tech and financial sectors. We project that the US Federal Reserve will likely cut interest rates by about 1% next year, which could provide further benefits.
News Directory 3: There have been ongoing discussions about the need for transparency in advertising practices within the financial sector. What is CITIC Financial’s stance on this?
Gao Lixu: We wholeheartedly agree on the importance of accurate information dissemination. Implementing real-name advertising practices is crucial in combatting misinformation and fostering trust among our clients. We aim to utilize social media platforms responsibly to provide transparent outreach.
News Directory 3: Looking toward the future, what strategies is CITIC Financial considering to sustain its growth trajectory?
Gao Lixu: We are continuously evaluating emerging business opportunities and market strategies. Our focus is on maintaining our strong performance while exploring new avenues for growth, particularly in international markets. Innovation and adaptability will be at the forefront of our approach as we move forward.
News Directory 3: Thank you, Gao, for sharing these insights. It will be interesting to see how CITIC Financial continues to navigate these challenges and opportunities.
Gao Lixu: Thank you for having me. We remain optimistic about our future and committed to delivering value to our stakeholders.
In response to calls for changes in advertising practices, Gao affirmed the need for accurate and transparent information dissemination through social media. He stressed that real-name advertising practices are necessary to combat misinformation in the financial sector.
CITIC Financial continues to evaluate future business opportunities and market strategies, aiming to maintain its strong performance and growth trajectory.