Industrial Bank (601166) H1 2024 earnings summary

Executive summary

• Achieved revenue of RMB 113.04 billion, up 1.80% year-over-year; net profit attributable to shareholders reached RMB 43.05 billion, up 0.86% year-over-year.

• Net interest income increased 4.22% year-over-year; net interest margin declined to 1.86%.

• Asset quality remained stable with NPL ratio at 1.08%; provision coverage at 237.82%.

• Total assets grew 1.89% from year-end 2023 to RMB 10.35 trillion; loans up 3.81%, deposits up 4.85%.

• No interim dividend or capital increase from reserves for the first half of 2024.

Financial highlights

• Operating income: RMB 113.04 billion, up 1.80% year-over-year.

• Net profit attributable to shareholders: RMB 43.05 billion, up 0.86% year-over-year.

• Net interest income: RMB 74.89 billion, up 4.22% year-over-year; non-interest income: RMB 38.15 billion, down 2.65%.

• Basic EPS: RMB 1.94; ROAA: 0.42%; ROAE: 5.50%.

• Operating cash flow: net outflow of RMB 288.44 billion, compared to net inflow of RMB 242.21 billion in 1H 2023.

Outlook and guidance

• Focus on high-quality growth, digital transformation, and risk management.

• Continue to optimize asset structure, support green, technology, and inclusive finance.

• Maintain prudent risk controls amid macroeconomic and sectoral uncertainties.