Industrial and Commercial Bank of China (1398) Q3 2024 earnings summary

Executive summary

• Net income for the first three quarters exceeded CNY 270 billion, up 0.2% year-over-year, with operating income at CNY 599.1 billion and a shrinking decrease rate.

• Total assets reached CNY 48.36 trillion, expanding by CNY 3.7 trillion; loans increased by CNY 2 trillion and investments by CNY 1.4 trillion.

• NPL ratio improved to 1.35%, down 1 basis point from the start of the year; capital adequacy ratio stood at 19.25%.

• Personal customers rose to 755 million, corporate customers to 13.15 million, and mobile banking MAU surpassed 200 million.

• Annualized ROA was 0.78% and ROE was 9.77%, both slightly down from last year.

Financial highlights

• Net income growth turned positive, while operating income decline narrowed compared to H1.

• Non-interest income showed robust momentum in Q3, driven by capital market and FX gains, rising 0.31% to RMB122,375 million.

• Provision coverage ratio remained above 200%.

• Bond trading income was 2.5 times higher than the previous term.

• Shareholders' equity rose 3.86% to RMB3,922,278 million.

Outlook and guidance

• Operating income is expected to continue decreasing, reflecting sector-wide trends.

• Net interest margin (NIM) faces ongoing downward pressure, with further narrowing expected in 2025.

• Loan growth for the full year is projected around 10%, slightly lower than last year but above societal and GDP averages.

• Asset quality for personal and retail loans may see a slight short-term NPL increase, but is expected to remain stable mid- to long-term.

• The Board proposed an interim cash dividend of RMB1.434 per ten shares for 2024, pending shareholder approval.