China's ICBC Q3 profit rises on higher interest income

Overview

• China banking giant's Q3 operating income grew 9% yr/yr, net profit up nearly 10%

• Nine-month net interest income totaled RMB 519.05 bln

• Basic EPS for nine months rose 6.85% yr/yr

Outlook

• Company did not provide specific guidance for current or future quarters in the press release

Result Drivers

• OPERATING INCOME GROWTH - Q3 operating income rose 9.5% yr/yr, supporting higher profits

• NET INTEREST INCOME - Nine-month net interest income totaled RMB 519.05 bln, contributing to earnings growth

• RETURN ON EQUITY - Annualised return on weighted average equity increased, indicating improved profitability

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Industrial and Commercial Bank of China Ltd is HK$8.65, about 11.2% above its October 29 closing price of HK$7.78

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads

• Oct 28 - China's Bank of Qingdao nine-month net profit rises 15.7%

• Oct 28 - China's Bank of Zhengzhou 9M net profit rises on higher net interest income

• Oct 28 - Standard Chartered Q3 pretax profit up 29% on higher interest income

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)