ICBC(601398)2024-10-31 06:40Investment Rating - The report assigns a 2024E P/B of 0.6x and a 2024E P/E of 5.9x, with a TTM dividend yield of 5.1%, which is in line with industry averages [1][4]. Core Insights - The Industrial and Commercial Bank (ICBC) reported a Q3 2024 revenue increase of 1.1% year-on-year, with pre-provision profit rising by 1.7% and net profit attributable to the parent company growing by 3.8% year-on-year [1][4]. - For the first three quarters of 2024, revenue decreased by 3.8% year-on-year, while pre-provision profit fell by 5.3%, and net profit attributable to the parent company increased by 0.1% year-on-year [1][4]. - The annualized ROA for Q1-Q3 2024 decreased by 0.08 percentage points to 0.78%, and the annualized ROE decreased by 0.79 percentage points to 9.77% [1][4]. - The core Tier 1 capital adequacy ratio increased by 0.56 percentage points year-on-year to 13.95% [1][4]. Summary of Financial Performance - In Q1-Q3 2024, the net interest margin remained stable compared to the first half of 2024, supported by a decline in the cost of liabilities [2][5]. - Net interest income decreased by 4.9% year-on-year, showing improvement from a decline of 6.8% in the first half of 2024, with Q3 net interest income down by 1.1% year-on-year [2][5]. - The non-performing loan ratio remained stable at 1.35%, while the provision coverage ratio slightly declined to 216.2% [3][5]. - Net fee and commission income decreased by 9.0% year-on-year, continuing the decline from -8.2% in the first half of 2024 [3][5]. - The cost-to-income ratio for Q1-Q3 2024 was 25.1%, an increase of 1.0 percentage point year-on-year [3][5].