Industrial and Commercial Bank of China (1398) H1 2024 earnings summary

Executive summary

• Maintained stable operations and industry leadership in total assets, loans, and deposits, with total assets reaching RMB47.12 trillion and net profit at RMB171.3 billion, despite a 2% year-on-year decline in net profit.

• Advanced "five transformations" strategy, focusing on intelligent risk control, digitalization, and diversified business structure.

• Enhanced service to the real economy, with targeted credit expansion in key sectors and strong support for national strategies.

• Interim cash dividend of RMB51.1 billion proposed, with a payout ratio of 30%.

• ROA was 0.75% and ROE 9.53% for H1 2024.

Financial highlights

• Total assets reached RMB47.12 trillion, up 5.4% from end-2023; loans to customers rose 6.7% to RMB27.84 trillion; deposits exceeded RMB34 trillion.

• Operating income was RMB402 billion; net profit was RMB171.3 billion; net interest income fell 6.8% year-over-year to RMB313.95 billion.

• Cost-to-income ratio was 24.79%; impairment losses on assets decreased 16.5% to RMB102.07 billion.

• Net fee and commission income was RMB67.4 billion; non-interest income rose 12% to RMB20.6 billion.

• Interim dividend payout planned at RMB51.1 billion, with A- and H-share yields at 5.79% and 7.97%.

Outlook and guidance

• Will continue to advance "five transformations" and focus on high-quality development, risk control, and digital transformation in H2 2024.

• Emphasis on “Five Priorities”: technology, green, inclusive, pension, and digital finance.

• Plans to stabilize net interest margin, enhance risk control, and promote diversified income sources.

• Committed to delivering stable returns to shareholders and supporting Chinese modernization.

• Confident in maintaining reasonable loan growth and leading market position, with ongoing support for the real economy.