ICBC posts profit gain on lending income
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