Industrial & Commercial Bank of China (ICBC) is set to announce its first-half results on Wednesday. Here are the key details:
Net Profit Forecast
According to a poll conducted by Visible Alpha, ICBC is expected to report a 5.1% increase in net profit, amounting to 176.55 billion yuan ($24.22 billion) for the six months ending on June 30. In comparison, the bank recorded a net profit of CNY167.95 billion in the same period last year.
What to Watch
Interest Income
The Visible Alpha poll suggests that ICBC's net interest income for the first half of the year is projected to decline by 2.4% compared to the previous year, reaching CNY342.84 billion. This decline is significant as it reflects the impact of falling loan interest rates in the country. In the first quarter, ICBC recorded a 4.8% decrease in net interest income, amounting to CNY168.41 billion.
Credit Costs
During the first quarter, ICBC experienced an 8.2% decrease in impairment losses on assets, totaling CNY65.02 billion. Investors are closely monitoring the size of credit costs as the domestic economy rebounds from the pandemic-induced slump.
Loan Quality
ICBC's non-performing loan ratio stood at 1.38% in the first quarter, remaining unchanged from the end of 2022. Investors are particularly interested in any changes in the bank's overall loan quality and specific sectors such as real estate and manufacturing.
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