ICBC posts profit gain on lend­ing in­come

The Star Malaysia - StarBiz - - Foreign News -

HONG KONG: In­dus­trial & Com­mer­cial Bank of China Ltd (ICBC), the world’s largest lender by as­sets, re­ported a 3.3% gain in third-quar­ter profit as lend­ing in­come jumped.

Net in­come for the three months through Septem­ber rose to 75 bil­lion yuan (US$11.3bil), ac­cord­ing to a Hong Kong stock ex­change fil­ing. Net in­ter­est in­come climbed 14%, it said.

The re­sults came af­ter ri­val China Con­struc­tion Bank Corp re­ported higher profit on Thurs­day amid im­prove­ments in in­ter- est mar­gins and as­set qual­ity.

Shares of the Big Four banks have jumped this year on op­ti­mism that the worst of a reg­u­la­tory crack­down is be­hind them and that sus­tained eco­nomic growth will boost prof­itabil­ity.

The quar­tet’s price-to-book ra­tios are near the high­est level in about two years.

ICBC’s net in­ter­est mar­gin was 2.17% by the end of Septem­ber, com­pared with 2.16% in the first half, the bank said.

The value of non-per­form­ing loans (NPLs) stood at 220 bil­lion yuan, up from the 217.1 bil­lion yuan the lender re­ported as of June.

Net in­ter­est in­come came in at 133.2 bil­lion yuan ver­sus year-ear­lier 117.1 bil­lion yuan while net fee and com­mis­sion in­come stood at 31 bil­lion yuan com­pared with 32 bil­lion yuan pre­vi­ously.

NPL ra­tio stood at 1.56% ver­sus 1.57% as of June 30 while cap­i­tal ad­e­quacy ra­tio at 14.67% ver­sus 14.46%. — Bloomberg

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