ICBC Posted Flat Net Profit in Third Quarter as Credit Costs Dropped

By Kosaku Narioka

Industrial & Commercial Bank of China posted flat net profit in the third quarter, as lower credit costs helped offset weaker earnings from the bank's lending and other regular operations.

The Chinese bank said Friday that net profit was 94.93 billion yuan ($12.98 billion) for the three months ended Sept. 30, compared with CNY94.90 billion a year earlier. That exceeded the estimate of CNY92.99 billion in a poll of analysts by Visible Alpha.

ICBC said net interest income, the bank's primary source of earnings, fell 6.4% from a year earlier to CNY164.54 billion, as loan interest rates have fallen in the country. Net fee and commission income also dropped 13% to CNY25.77 billion.

Meanwhile, impairment losses on assets decreased 29% from a year earlier to CNY25.56 billion as the domestic economy continues to recover from a slump caused by the pandemic and related restrictions.

The lender's nonperforming-loan ratio declined to 1.36% at the end of September from 1.38% at the end of 2022, while total loans and advances to customers were at CNY25.782 trillion, up 11% from the end of last year.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

October 27, 2023 05:34 ET (09:34 GMT)

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