Ping An Securities·2025-09-02 08:25Investment Rating - The report maintains a "Recommendation" rating for Industrial and Commercial Bank of China (ICBC) [1][4][7] Core Views - The report highlights that ICBC's revenue has turned positive year-on-year, with a 1.6% increase in revenue for the first half of 2025, while net profit attributable to shareholders decreased by 1.4% [4][7] - The bank's total assets reached 52.3 trillion yuan, reflecting an 11.0% year-on-year growth, with loans and deposits increasing by 8.4% and 8.3% respectively [4][7] - The report emphasizes the bank's stable asset quality, with a non-performing loan (NPL) ratio holding steady at 1.33% and a robust provision coverage ratio of 218% [8][7] Summary by Sections Financial Performance - In the first half of 2025, ICBC achieved an operating income of 427.1 billion yuan, a 1.6% increase year-on-year, while net profit attributable to shareholders was 168.1 billion yuan, down 1.4% [4][9] - The annualized return on equity (ROE) was reported at 8.82% [4][9] Revenue Breakdown - Interest income showed a slight decline of 0.1% year-on-year, while non-interest income surged by 6.5%, driven by a significant increase in other non-interest income, which rose by 18.8% [7][9] - The bank's net interest margin (NIM) was recorded at 1.30%, with a year-on-year decline of 13 basis points [7][9] Asset Quality - The NPL ratio remained stable at 1.33%, with a slight year-on-year decrease of 2 basis points [8][9] - The provision coverage ratio improved to 218%, indicating strong risk mitigation capabilities [8][9] Future Outlook - The report projects EPS for 2025-2027 to be 1.03, 1.06, and 1.09 yuan respectively, with corresponding profit growth rates of 0.7%, 2.3%, and 3.4% [7][9] - The bank's stock is viewed as a high-dividend option, with a current price-to-book (P/B) ratio of 0.68x for 2025 [7][9]