Industrial and Commercial Bank of China (1398) H2 2024 earnings summary

Executive summary

• Achieved net profit of RMB366.9 billion, up 0.5% year-over-year, with stable asset quality and improved capital adequacy ratio to 19.39%.

• Celebrated 40th anniversary, emphasizing five transformations: intelligence risk control, modern business layout, digital growth, diversified structure, and ecological foundation.

• Maintained stable operations and resilience, with total assets nearing RMB48.8 trillion and customer loans exceeding RMB28.4 trillion.

• Continued leadership in green finance, inclusive finance, and digital transformation.

• Focused on serving the real economy, supporting key industries, and expanding international operations across 149 countries.

Financial highlights

• Annual operating revenue reached RMB786.1 billion; net profit was RMB366.9 billion, both leading domestically.

• Net interest income fell 2.7% to RMB637.4 billion; net fee and commission income dropped 8.3% to RMB109.4 billion.

• Customer loans grew 8.8% year-on-year; customer deposits up 3.9% year-on-year.

• Dividend payout increased, with interim and year-end dividends totaling nearly RMB110 billion.

• Net asset value per share reached RMB10.23; basic and diluted EPS at RMB0.98.

Outlook and guidance

• Expectation of continued positive growth in 2025, aiming to outperform industry average despite NIM pressure.

• NIM expected to decline but at a slower pace; LPR likely to continue decreasing in 2025.

• Management targets high-quality growth, digital transformation, and risk control in 2025.

• Focus on balancing value creation, risk control, and capital constraints for robust key indicators.

• Focus on “five transformations” and supporting real economy, with continued investment in technology and green finance.