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Industrial and Commercial Bank of China
(1398)
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Rating:69Neutral
Price Target:
HK$8.00
â–˛(6.95% Upside)
Action:Downgraded
Date:08/29/26
The score reflects solid but not flawless fundamentals (stable profitability and positive free cash flow tempered by TTM revenue contraction and rising leverage), supported by favorable technical momentum and an attractive valuation (low P/E and high dividend yield). The latest earnings call was broadly constructive—showing growth, improving asset quality, and strong capital—while acknowledging net interest margin headwinds and pockets of credit risk.
Positive Factors
Resilient revenue and profit growth
Broad-based revenue growth across interest and fee businesses shows that ICBC is maintaining earnings momentum despite a difficult banking environment. Its scale and diversified revenue streams can support durable profitability over the next several quarters.
Negative Factors
Persistent net interest margin pressure
Net interest income remains the bank’s core earnings engine, so a narrowing spread can constrain profit growth even when balances expand. Maturing deposits and repricing pressure may keep margins subdued and force greater reliance on fees and investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient revenue and profit growth
Broad-based revenue growth across interest and fee businesses shows that ICBC is maintaining earnings momentum despite a difficult banking environment. Its scale and diversified revenue streams can support durable profitability over the next several quarters.
Read all positive factors
Industrial and Commercial Bank of China (1398) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$3.15T
Dividend Yield4.64%
Average Volume (3M)179.20M
Price to Earnings (P/E)7.8
Beta (1Y)0.54
Revenue Growth0.92%
EPS Growth6.35%
CountryHK
Employees409,758
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.05
Shares Outstanding86,794,050,000
10 Day Avg. Volume190,942,783
30 Day Avg. Volume179,202,110
Financial Highlights & Ratios
PEG Ratio-1.19
Price to Book (P/B)0.51
Price to Sales (P/S)1.32
P/FCF Ratio4.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.04
Revenue Forecast (FY)HK$880.10B
Industrial and Commercial Bank of China Business Overview & Revenue Model
Company Description
Industrial and Commercial Bank of China Limited (ICBC), together with its affiliated entities, functions as a leading financial institution, delivering a broad spectrum of banking products and services both within the People's Republic of China an...
How the Company Makes Money
ICBC makes money mainly through (1) net interest income and (2) non-interest (fee and commission) income, with additional contributions from financial markets activities and other operating income.
1) Net interest income (interest spread): The ba...
Industrial and Commercial Bank of China Earnings Call Summary
Earnings Call Date:Aug 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call conveyed multiple clear strengths: solid revenue growth, large scale and improved asset quality metrics, strong international expansion and significant progress on digital/AI transformation and tech finance support. Management acknowledged ongoing margin pressure, retail/inclusive-credit risks and some reliance on market-driven investment income, and signaled cautious capital-risk balancing while increasing the interim dividend. Overall the positives (broad-based revenue growth, robust capital and provisioning, technology and international progress, and shareholder-friendly dividend action) outweigh the challenges.Positive Updates
Strong Top-Line Growth
Operating revenue of CNY 446 billion in H1 2026, up ~9.1% year-over-year, reflecting synchronized rebounds in NII, noninterest income and fee income across all four segments.
Negative Updates
Compressed Net Interest Margin
NIM at 1.29% (up only 1 bp YoY), with management warning that the deposit-repricing dividend will gradually weaken as old time deposits mature and spread between old/new products narrows.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Operating revenue of CNY 446 billion in H1 2026, up ~9.1% year-over-year, reflecting synchronized rebounds in NII, noninterest income and fee income across all four segments.
Read all positive updates
Company Guidance
ICBC’s guidance emphasized balancing growth and security while accelerating its 5‑year transformation and provided numerous metrics: as of June total assets CNY57.0tn, operating revenue CNY446bn (+9.1% Y/Y), net profit CNY176bn (+4.5%), fee income CNY69.2bn (+3.3%), NIM 1.29% (+1bp), NPL ratio 1.29% (‑2bps), capital adequacy ratio 18.57% and provision coverage 217.5% (+3.8pp); loans ~CNY32tn, deposits CNY39tn (+CNY1.86tn, +5%), investments CNY18.63tn (+CNY1.73tn, +10.2%), onshore investments ~CNY47tn (+CNY3tn, +11.1%), loan growth +CNY1.4tn (+6.4% Y/Y), five‑major‑article loans CNY14.5tn (+>CNY1tn), manufacturing loans CNY5.8tn, trade finance CNY1.2tn, personal loans >CNY2tn (consumer +22%). Shareholder returns: interim payout ratio raised to 31% = CNY1.51/10 shares (~CNY53bn), dividend yields A/H 4.22%/5.36%. International and digital metrics: overseas assets USD511bn (pretax profit USD3bn, +15%), overseas net profit CNY12.9bn (+55%), network in 69 countries, RMB clearing expanded (clearing banks in 12 countries and joint clearing coverage to 19 African countries), cross‑border RMB volume CNY5.5tn (settlement +CNY299bn, +34%), offshore custody >CNY3tn, custody scale CNY33.7tn. Tech and AI: loans to tech companies CNY3tn, digital economy loans CNY1.26tn (+~20%), AUM CNY6.52tn (+10.3%), tech leasing disbursements +150% Y/Y, subsidiaries’ equity financing >CNY100bn, >600 large‑model scenarios, AI agent >22m service interactions, AI workload ~30,000 person‑years, enterprise risk platform covering 323 scenarios. Management warned the deposit‑repricing dividend to NIM will gradually weaken, so they will optimize ALM, deepen proactive asset‑and‑liability and intelligent risk management, and seek to sustain stable dividends while preserving capital adequacy.Industrial and Commercial Bank of China Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.05T | 1.53T | 660.39B | 656.94B | 663.15B | 658.26B |
| Gross Profit | 586.64B | 833.50B | 660.39B | 838.05B | 871.34B | 658.26B |
| EBITDA | 435.87B | 430.20B | 456.37B | 456.74B | 458.73B | 456.22B |
| Net Income | 372.28B | 359.02B | 365.86B | 363.99B | 361.13B | 348.34B |
Balance Sheet | ||||||
| Total Assets | 57.06T | 53.50T | 48.82T | 44.70T | 39.61T | 35.17T |
| Cash, Cash Equivalents and Short-Term Investments | 3.52T | 4.74T | 6.97T | 5.30T | 4.74T | 4.19T |
| Total Debt | 11.85T | 10.28T | 2.60T | 1.90T | 912.97B | 1.28T |
| Total Liabilities | 52.95T | 49.50T | 44.83T | 40.92T | 36.09T | 31.90T |
| Stockholders Equity | 4.08T | 3.98T | 3.97T | 3.76T | 3.50T | 3.26T |
Cash Flow | ||||||
| Free Cash Flow | -480.08B | 409.60B | 543.61B | 1.40T | 1.39T | 339.02B |
| Operating Cash Flow | -433.63B | 457.31B | 579.19B | 1.42T | 1.40T | 360.88B |
| Investing Cash Flow | -2.51T | -5.12T | -1.47T | -891.85B | -910.62B | -674.56B |
| Financing Cash Flow | 1.15T | 4.25T | 415.68B | 285.44B | -64.79B | -11.55B |
Industrial and Commercial Bank of China Technical Analysis
Positive
7.48
Price Trends
7.18
Positive
7.04
Positive
6.62
Positive
Market Momentum
0.11
Positive
54.68
Neutral
53.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1398, the sentiment is Positive. The current price of 7.48 is above the 20-day moving average (MA) of 7.45, above the 50-day MA of 7.18, and above the 200-day MA of 6.62, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 54.68 is Neutral, neither overbought nor oversold. The STOCH value of 53.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1398.
Industrial and Commercial Bank of China Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$2.23T | 7.84 | 8.41% | 4.32% | 2.02% | 1.80% | |
74 Outperform | HK$1.22T | 7.02 | 12.33% | 4.38% | -0.16% | 5.69% | |
72 Outperform | HK$2.72T | 8.20 | 9.73% | 6.65% | 4.19% | 7.85% | |
70 Outperform | HK$2.56T | 8.26 | 9.62% | 4.57% | 2.44% | 5.10% | |
69 Neutral | HK$3.15T | 7.84 | 9.18% | 4.64% | 0.92% | 6.35% | |
68 Neutral | HK$680.30B | 7.37 | 8.44% | 4.94% | 1.86% | -7.09% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
HK:1398
Industrial and Commercial Bank of China
7.55
1.85
32.58%
HK:1288
Agricultural Bank of China
6.30
0.93
17.36%
HK:3988
Bank of China
5.92
1.69
39.93%
HK:0939
China Construction Bank
9.61
2.07
27.39%
HK:3968
China Merchants Bank Co
51.85
5.25
11.25%
HK:1658
Postal Savings Bank of China Co., Ltd. Class H
5.33
-0.24
-4.38%
Industrial and Commercial Bank of China Corporate Events
ICBC Board Clears 15th Five‑Year Plan Strategy and RMB2.114 Billion Preference Share Payout
Aug 28, 2026
Industrial and Commercial Bank of China’s board met in Beijing on 28 August 2026, with all 13 directors present, and approved the bank’s development plan for China’s 15th Five‑Year Plan period, underlining its long‑te...
ICBC Sets 2026 Interim Cash Dividend for Hong Kong Shareholders
Aug 28, 2026
Industrial and Commercial Bank of China Limited has announced an interim ordinary cash dividend for the six months ended 30 June 2026, set at RMB 1.511 per 10 shares for its Hong Kong-listed equity. The dividend relates to the 2026 financial year,...
ICBC Outlines Capital and Risk Profile in 2026 Half-Year Pillar 3 Report
Aug 28, 2026
Industrial and Commercial Bank of China has released its Pillar 3 Disclosure Report on capital management for the first half of 2026, outlining how it measures and manages key regulatory risks. The document covers risk management frameworks, risk-...
ICBC Highlights Strategic Focus and Confirms 2026 Interim Results Review
Aug 28, 2026
Industrial and Commercial Bank of China Limited, one of the world’s largest commercial banks, operates a broad suite of corporate and retail banking services across global markets, serving millions of enterprises and hundreds of millions of ...
ICBC Schedules Webcast for 2026 Interim Results Disclosure
Aug 21, 2026
Industrial and Commercial Bank of China Limited will disclose its 2026 interim results on 28 August 2026 and has scheduled an online results release to brief investors on its performance and operating conditions. The webcast, led by President Liu ...
ICBC Raises RMB60 Billion Through Tier 2 Bond Connect Issuance
Aug 20, 2026
Industrial and Commercial Bank of China Limited has completed the issuance of its 2026 Tier 2 Capital Notes (Series 5) via the Bond Connect channel in China’s National Interbank Bond Market, following approvals from relevant regulators. The ...
ICBC Sets August 2026 Board Meeting to Approve Interim Results and Dividends
Aug 18, 2026
Industrial and Commercial Bank of China Limited has scheduled a board meeting for 28 August 2026 to review and approve its interim financial results for the six months ended 30 June 2026. The board will also consider matters related to the payment...
ICBC Completes RMB60 Billion Tier 2 Bond Issuance via Bond Connect
Jul 13, 2026
Industrial and Commercial Bank of China Limited is a major Chinese commercial bank operating in the financial services industry, providing a broad range of banking products including corporate and retail lending, deposit-taking and capital markets...
ICBC raises RMB20 billion with Additional Tier 1 bond to bolster capital
Jul 10, 2026
Industrial and Commercial Bank of China Limited has completed the issuance of its 2026 Undated Additional Tier 1 Capital Bonds (Series 3) via Bond Connect in China’s National Interbank Bond Market. The offering, which was book-run on 8 July ...
ICBC Fully Redeems RMB38 Billion Subordinated Bonds Issued in 2011
Jun 30, 2026
Industrial and Commercial Bank of China Limited has fully redeemed RMB38 billion in subordinated bonds that were originally issued in China’s National Interbank Bond Market in June 2011. The bonds carried an issuer redemption option, allowin...
ICBC Board Approves Liability Insurance and Committee Roles for Director Liu Fang
Jun 26, 2026
ICBC’s board of directors met in Beijing on 26 June 2026, with full attendance of all 13 directors and senior management, and confirmed the meeting was conducted in compliance with relevant laws and internal governance rules. The board unani...
ICBC Sets Out Board Composition and Committee Roles
Jun 26, 2026
Industrial and Commercial Bank of China Limited has disclosed the current composition of its board of directors, detailing executive, non-executive and independent non-executive members, including Chairman Liao Lin and Vice Chairman and President ...
ICBC Reports Strong Shareholder Turnout at 2025 Annual General Meeting
Jun 26, 2026
Industrial and Commercial Bank of China Limited held its Annual General Meeting for the year 2025 on 26 June 2026, convening simultaneously at its Beijing head office and a Hong Kong venue via video conference. The meeting followed Chinese company...
ICBC Raises RMB50 Billion Through Tier 2 Capital Notes to Bolster Capital Base
Jun 15, 2026
Industrial and Commercial Bank of China Limited has completed the issuance of its 2026 Tier 2 Capital Notes (Series 3) via Bond Connect in China’s National Interbank Bond Market. The bank placed RMB50 billion of 10‑year fixed‑rat...
ICBC Fully Redeems RMB70 Billion Additional Tier 1 Capital Bonds
Jun 9, 2026
Industrial and Commercial Bank of China Limited, one of China’s leading commercial banks, raised RMB70 billion in June 2021 through undated additional tier 1 capital bonds issued in the National Interbank Bond Market. These instruments form ...
ICBC Bolsters Capital Base with RMB20 Billion Additional Tier 1 Bond Issue
Jun 8, 2026
Industrial and Commercial Bank of China Limited has completed the issuance of its 2026 Undated Additional Tier 1 Capital Bonds (Series 2) via Bond Connect in China’s National Interbank Bond Market. The RMB20 billion issue, book-run on 4 June...
ICBC Board Backs Nomination of Liu Fang as Non-Executive Director
Jun 4, 2026
Industrial and Commercial Bank of China’s board has approved the nomination of Liu Fang as a candidate for non-executive director, following a written meeting held in early June 2026. The nomination, proposed by Central Huijin Investment and...
ICBC Sets 2025 AGM to Vote on Governance, Auditor and Board Changes
Jun 4, 2026
Industrial and Commercial Bank of China has called its 2025 Annual General Meeting for 26 June 2026, to be held concurrently at its Beijing head office and a Hong Kong venue, reflecting its dual-market presence and shareholder base. Shareholders w...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.