Industrial and Commercial Bank of China (1398) Q1 2026 earnings summary

Executive summary

• Q1 delivered the strongest start in recent years, with revenue up 8.45% YoY to RMB221,980 million and net profit up 3.9% to RMB88,013 million; annualized ROA was 0.64% and ROE 8.83%, both slightly down YoY.

• Net interest income rose 7.49% YoY, marking the first growth since 2023, and net interest margin (NIM) increased by 1 basis point to 1.29%.

• Total assets surpassed RMB55,772,584 million, making it the world's first commercial bank to reach this milestone, with total loans and advances up 3.74%.

• Shareholders' equity increased 1.96% to RMB4,355,759 million.

• Risk management remained robust, with NPL ratio stable at 1.31% and provision coverage at 214.38%.

Financial highlights

• Net fee and commission income grew 5.24% YoY; other non-interest income surged 38.9%.

• Net cash flows from operating activities surged 50.27% to RMB1,416,276 million.

• Cost-to-income ratio was 22.09%; impairment losses on assets increased 21.55% to RMB69,446 million.

• Customer deposits reached RMB38.59 trillion, up 3.4% from year-end; average daily balance up 4.19%.

• NPL disposals totaled RMB70.5 billion in Q1, up RMB15.1 billion YoY.

Outlook and guidance

• Emphasis on balanced and targeted credit allocation, avoiding front loading and ensuring even deployment.

• Plans to further increase corporate lending, focusing on key sectors and national strategies.

• Optimistic about fee and commission income for the year, expecting a positive growth trend.

• NIM expected to turn positive YoY but continue a slow decline; deposit costs expected to decrease further.

• Regulatory approval received to issue up to RMB800 billion in capital and TLAC instruments, supporting future capital adequacy.