China CITIC Bank may have to bankroll again amid new capital rules

CITIC Bank may not have put capital concerns behind it even after raising Rmb26bn funds in 3Q11, says CIMB.

The bank's Core CAR rose from 8.45% at end-10 to 9.91% while CAR increased from 11.31% to 12.27%, helped mainly by Rmb26bn rights issue proceeds in 3Q11.

Due to the increased risk weighting for certain assets, FY11RWA growth came in at 22.9%, higher than expected.

Management however estimates that new capital rules might drag down its CAR by 1.3% pts, which could renew
capital concerns, says CIMB.