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

Executive summary

• Celebrated 40th anniversary, emphasizing the “Five Transformations” (intelligent risk control, modernization, digitalization, diversification, and ecosystem foundation) and building a world-class modern financial institution.

• Maintained stable operations and resilience, focusing on value creation, market competitiveness, and risk management.

• 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%.

• Continued global expansion, with operations in 149 countries and regions and strong Belt and Road participation.

Financial highlights

• Total assets reached RMB48.8 trillion; customer loans grew to RMB28.4 trillion, up RMB2.3 trillion year-over-year.

• Customer deposits rose to RMB34.8 trillion, up RMB1.3 trillion; total market capitalization at year-end was $317.8 billion.

• Annual operating revenue was RMB786.1 billion; net profit RMB366.9 billion.

• Net interest margin at 1.42%, down 19 basis points year-over-year; cost-to-income ratio 29.43%.

• NPL ratio 1.34%, down 2 basis points; provision coverage 214.91%.

Outlook and guidance

• Management targets high-quality growth, digital transformation, and risk control in 2025, with continued focus on the “Five Transformations.”

• Asset quality expected to remain stable and under control, with continued investment in technology and green finance.

• Expect NIM to continue declining but at a slower pace; LPR likely to decrease in 2025.