ICBC Reports Small Gain in Annual Net Profit As Earnings from Lending Drop

By Kosaku Narioka

Industrial & Commercial Bank of China reported a slight gain in net profit in 2023 as smaller credit costs helped offset drops in earnings from lending and other regular operations.

The Chinese bank said Wednesday that net profit rose 0.8% to 349.03 billion yuan ($48.35 billion) last year. That missed the estimate of CNY355.33 billion in a poll of analysts from data provider Visible Alpha.

Net interest income, the bank's primary source of earnings, dropped 5.3% to CNY655.01 billion as loan interest rates have fallen in China. Net fee and commission income fell 7.7% to CNY119.36 billion, dragged by market volatility.

Drops in operating income was partly offset by lower credit costs. Impairment losses on assets decreased 17% to CNY150.82 billion as the domestic economy recovered from a slump caused by the pandemic and related restrictions.

The bank's non-performing loan ratio declined to 1.36% at the end of December from 1.38% at the end of 2022.

Write to Kosaku Narioka at [e-mail]

(END) Dow Jones Newswires

03-27-24 0932ET