Of Special Interest
26th August 2011
ICBC profits continue to rise
The Industrial and Commercial Bank of China reported a first half profit after tax of Y109.6bn (€11.9bn £10.4bn $17.2bn ¥1,314bn) an increase of 29% on the year ago figure. Annualised return on equity was 25.12% up 122bp on a year ago. NPL was down 13bp at 0.98%.
ICBC increased net interest margin by 16bp to reach 2.6% and NII was Y174.5bn, up 21.8% on loan growth was 6.6%. Deposits grew 8,7% leading to a Loan to Deposit ratio of 61%. Fee income continues to increase rapidly up 46% on a year ago and now accounting for 23% of total income. ICBC, thanks in part to attempts to slow loan growth by the authorities, have a reserve covering provisions 2.6 times.