Industrial and Commercial Bank of China (1398) Q3 2025 earnings summary

Executive summary

• Operating income for the first three quarters reached RMB 611 billion, up 2% year-on-year, with net profit at RMB 271.9 billion, up 0.5% year-on-year, reversing the decline from H1 2025.

• Annualized return on weighted average equity was 9.3%, and annualized return on average total assets was 0.71%.

• Net interest income decreased by 0.70% to RMB 473,416 million, while non-interest income rose 12.40% to RMB 137,552 million.

• The bank maintained strong efficiency with a cost-to-income ratio of 26.55% and continued to advance digital transformation and risk management.

Financial highlights

• Total assets exceeded RMB 52.81 trillion, up 8.2% from the end of last year, with customer loans at RMB 30.45 trillion and deposits at RMB 37.3 trillion.

• NPL ratio was 1.33%, down 0.01 percentage points from end-2024; allowance to NPLs was 217.21%.

• Fee-based income reached RMB 90.9 billion, up 0.6%, with trading-related non-interest income up 45.7% to RMB 46.7 billion.

• Domestic subsidiaries' operating income rose 34.5%, increasing their contribution to total income.

• Basic and diluted EPS for nine months were RMB 0.73, up 1.39% year-over-year.

Outlook and guidance

• Management expects NIM to stabilize around 1.26% for the full year, with further stabilization likely in the next 1-2 years.

• Sustained growth is anticipated as macro policies take effect, with a focus on balancing quantity and pricing, diversifying growth drivers, and leveraging market volatility.

• Fee-based income is expected to continue growing, driven by wealth management, payment services, and industrial finance.

• Interim cash dividend of RMB 1.414 per ten shares (pre-tax) proposed for 2025, pending shareholder approval.

• Board plans to distribute dividends on preference shares and ordinary shares, maintaining a stable payout policy.