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Industrial And Commercial Bank Of China Ltd Class H 01398 Stock Quote

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Morningstar‘s Stock Analysis 01398

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ICBC’s H1 Revenue Growth Remained Largely Steady Despite Mounting Challenges

Iris Tan, CFA Senior Equity Analyst

Analyst Note

| Iris Tan, CFA |

Industrial and Commercial Bank of China reported 4.2% and 4.9% year-on-year growth in first-half total revenue and net profits respectively, slowing from the 6.5% and 5.7% growth in the first quarter. The results were largely in line to meet our full-year net profit growth forecast of 4.9% and we retain our fair value estimates of CNY 5 for the A shares and HKD 6 for the H shares. Positively, 4.2% revenue growth was flat from the first half of 2021 despite the economic challenges in 2022. This was attributable to accelerating loan growth and higher investment income during 2022, which helped largely offset the negative impact of falling net interest margin and subdued fee income growth. We expect ICBC’s second-half loan growth to remain strong as management noted the loan project reserve increased by 27% year on year to CNY 1.4 trillion.

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Key Statistics 01398

Company Profile 01398

Business Description

ICBC is headquartered in Beijing and founded in 1984, the bank listed its shares in mainland China and Hong Kong in 2006. It is China's largest by asset scale and by share of lending and deposits. Central Huijin Investment (China's sovereign wealth fund manager) and China's Ministry of Finance are ICBC's two largest shareholders, each with a stake of around 35%. ICBC operates 16,270 outlets. Among these outlets, 417 outlets are located in 42 countries and regions overseas. Corporate banking, retail banking, and wholesale banking accounted for 43%, 42%, and 14% of total revenue, respectively; and 33%, 46%, and 20% of profit before tax in 2021. Overseas banking and other business contributed 15% of total revenue and 11% of profit before tax in 2021.

3 Garden Road, 33rd Floor, ICBC Tower
Hong Kong, Hong Kong
T +852 25881188
Industry Banks - Diversified
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 424,962