By Kosaku Narioka
Industrial & Commercial Bank of China reported third-quarter results on Friday. Here is what you need to know.
NET PROFIT: ICBC’s net profit was flat at 94.93 billion yuan ($12.98 billion) for the three months ended Sept. 30, compared with CNY94.90 billion a year earlier. That surpassed the estimate of CNY92.99 billion in a poll of analysts by Visible Alpha.
WHAT WE WATCHED:
–INTEREST INCOME: Net interest income, the bank’s primary source of earnings, dropped 6.4% from a year earlier to CNY164.54 billion, as loan interest rates have lately declined in the country.
–LOAN QUALITY: Nonperforming-loan ratio declined to 1.36% at the end of September from 1.38% at the end of 2022. Impairment losses on assets dropped 29% from a year earlier to CNY25.56 billion, helping the bank’s bottom line, as the domestic economy continues to recover from a slump caused by the pandemic and related restrictions.
–PROFITABILITY DECLINE: For the first nine months of 2023, annualized return on assets was down 0.10 percentage point to 0.86% and annualized return on equity was down 0.76 percentage point to 10.56%.
Write to Kosaku Narioka at [email protected]
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