Industrial Bank Co Ltd Class A

601166: XSHG (CHN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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Industrial Bank Earnings: We Cut Our Fair Value Slightly as China’s Rate Cuts Pressure Margins

Iris Tan , Junhao Yang

Nov 4, 2024

Following its third-quarter results, we have reduced our fair value estimate for Industrial Bank by 4.2% to CNY 18.50 per share. The bank’s earnings for the quarter met our expectations, with a net interest margin of 1.84%. However, management indicated that NIM is likely to narrow by 12 basis points in 2025 due to China’s recent mortgage repricing plan and loan prime rate cut. We believe Industrial Bank’s relatively cautious guidance is due to its higher loan/deposit ratio, larger proportion of term deposits, and greater share of mortgage loans compared with peers.

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Industrial Bank Co Ltd Class A

Industrial Bank Earnings: We Cut Our Fair Value Slightly as China’s Rate Cuts Pressure Margins

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