Industrial and Commercial Bank of China Limited Class H (HK:1398)
:1398
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Industrial and Commercial Bank of China
(1398)
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Rating:70Outperform
Price Target:
HK$7.50
â–²(15.56% Upside)
Action:ReiteratedDate:03/28/26
The score is driven primarily by attractive valuation (very low P/E and strong dividend yield), supported by moderate positive technical trend signals. These positives are balanced by financial-performance risks tied to rising leverage and volatile cash-flow patterns, plus earnings-call cautions around continued net interest margin pressure and sector credit stress (notably real estate).
Positive Factors
Scale and client deposit/loan growth
Large and growing asset base with simultaneous loan and deposit expansion strengthens ICBC's funding franchise and lending capacity. Durable deposit funding supports margin resilience, enables market share maintenance across corporate and retail segments, and underpins stable interest income generation.
Negative Factors
Rising leverage and debt growth
Material leverage increase and a sharp jump in total debt reduce financial flexibility and raise sensitivity to funding and market shocks. If credit conditions tighten, higher leverage can force more conservative lending, constrain risk-taking and increase refinancing and regulatory pressure on capital ratios.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale and client deposit/loan growth
Large and growing asset base with simultaneous loan and deposit expansion strengthens ICBC's funding franchise and lending capacity. Durable deposit funding supports margin resilience, enables market share maintenance across corporate and retail segments, and underpins stable interest income generation.
Read all positive factors
Industrial and Commercial Bank of China (1398) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$2.88T
Dividend Yield5.46%
Average Volume (3M)201.20M
Price to Earnings (P/E)5.6
Beta (1Y)0.50
Revenue Growth-3.35%
EPS Growth0.58%
CountryHK
Employees415,159
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.32
Shares Outstanding86,794,050,000
10 Day Avg. Volume205,509,784
30 Day Avg. Volume201,200,829
Financial Highlights & Ratios
PEG Ratio-1.16
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 Target
HK$9.21Price Target Upside41.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.03
Revenue Forecast (FY)HK$847.71B
Industrial and Commercial Bank of China Business Overview & Revenue Model
Company Description
Industrial and Commercial Bank of China Limited, together with its subsidiaries, provides banking products and services in the People's Republic of China and internationally. It operates through Corporate Banking, Personal Banking, and Treasury Op...
How the Company Makes Money
ICBC primarily makes money by earning interest and fee-based income from banking and related financial services. (1) Net interest income: ICBC takes deposits and other funding and uses those funds to extend loans and advances to corporate and reta...
Industrial and Commercial Bank of China Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
ICBC demonstrated resilience and growth with positive trends in operating income, net profit, and asset management. However, challenges remain in terms of narrowing interest margins and pressures within the real estate and personal finance sectors. The bank's steady advancement in inclusive finance and risk control measures provide a balanced outlook.Positive Updates
Operating Income and Net Profit Growth
ICBC achieved operating income of CNY 611 billion, up 2% year-on-year, and net profit reached CNY 271.9 billion, up 0.5% year-on-year, indicating a recovery trend.
Negative Updates
Narrowing Net Interest Margin (NIM)
NIM decreased by 2 bps from the first half, and the full year NIM is expected to remain around 1.26%, indicating ongoing pressure on interest margins.
Read all updates
Q3-2025 Updates
Positive
Negative
Operating Income and Net Profit Growth
ICBC achieved operating income of CNY 611 billion, up 2% year-on-year, and net profit reached CNY 271.9 billion, up 0.5% year-on-year, indicating a recovery trend.
Read all positive updates
Company Guidance
During the ICBC 2025 Q3 earnings call, the bank reported several key performance metrics. Operating income for the first three quarters reached CNY 611 billion, marking a 2% year-on-year increase, while net profit was CNY 271.9 billion, up 0.5% year-on-year. The annualized return on assets (ROA) and return on equity (ROE) improved to 0.71% and 9.3%, respectively. The cost-to-income ratio was stable at 26.55%, and the net interest margin (NIM) saw a slight decline by 2 basis points from the first half. Total assets exceeded CNY 52.81 trillion, reflecting an 8.2% growth from the previous year. Customer loans increased to CNY 30.45 trillion, a 7.3% rise, and bond investments surged by 16.2% to reach CNY 16.01 trillion. The non-performing loan (NPL) ratio was slightly reduced to 1.33%, and the capital adequacy ratio (CAR) was a robust 18.85%. Additionally, the provision coverage ratio increased to 217.1%, showcasing ICBC's strengthening risk management.Industrial and Commercial Bank of China Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
56
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.53T | 660.39B | 656.94B | 663.15B | 658.26B |
| Gross Profit | 666.46B | 660.39B | 838.05B | 871.34B | 658.26B |
| EBITDA | 430.20B | 456.37B | 0.00 | 458.73B | 456.22B |
| Net Income | 359.02B | 365.86B | 363.99B | 361.13B | 348.34B |
Balance Sheet | |||||
| Total Assets | 53.50T | 48.82T | 44.70T | 39.61T | 35.17T |
| Cash, Cash Equivalents and Short-Term Investments | 4.74T | 6.97T | 5.30T | 4.74T | 4.19T |
| Total Debt | 10.28T | 2.60T | 1.90T | 912.97B | 1.28T |
| Total Liabilities | 49.50T | 44.83T | 40.92T | 36.09T | 31.90T |
| Stockholders Equity | 3.98T | 3.97T | 3.76T | 3.50T | 3.26T |
Cash Flow | |||||
| Free Cash Flow | 409.60B | 543.61B | 1.40T | 1.39T | 339.02B |
| Operating Cash Flow | 457.31B | 579.19B | 1.42T | 1.40T | 360.88B |
| Investing Cash Flow | -5.12T | -1.47T | -891.85B | -910.62B | -674.56B |
| Financing Cash Flow | 4.25T | 415.68B | 285.44B | -64.79B | -11.55B |
Industrial and Commercial Bank of China Technical Analysis
Positive
6.49
Price Trends
6.46
Positive
6.35
Positive
6.09
Positive
Market Momentum
0.12
Negative
71.05
Negative
96.02
Negative
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 6.49 is below the 20-day moving average (MA) of 6.54, above the 50-day MA of 6.46, and above the 200-day MA of 6.09, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 71.05 is Negative, neither overbought nor oversold. The STOCH value of 96.02 is Negative, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$1.15T | 8.32 | 11.95% | 4.26% | -4.57% | 1.77% | |
77 Outperform | HK$2.25T | 5.23 | 9.77% | 5.64% | -4.61% | 0.94% | |
76 Outperform | HK$2.61T | 6.66 | 9.18% | 4.81% | -2.85% | 10.49% | |
75 Outperform | HK$1.96T | 5.41 | ― | 5.67% | -3.68% | 2.67% | |
70 Outperform | HK$2.88T | 5.61 | 9.18% | 5.46% | -3.35% | 0.58% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | HK$649.92B | 6.72 | 9.30% | 5.37% | -1.54% | -3.95% |
* Financial Sector Average
HK:1398
Industrial and Commercial Bank of China
6.96
2.21
46.62%
HK:1288
Agricultural Bank of China
5.68
1.69
42.50%
HK:3988
Bank of China
5.06
1.14
28.98%
HK:0939
China Construction Bank
8.45
2.58
44.08%
HK:3968
China Merchants Bank Co
49.70
10.76
27.62%
HK:1658
Postal Savings Bank of China Co., Ltd. Class H
4.93
0.64
14.92%
Industrial and Commercial Bank of China Corporate Events
ICBC Proposes Final 2025 Dividend and Sets Key Payment Dates
Mar 27, 2026
Industrial and Commercial Bank of China Limited has proposed a final ordinary cash dividend of RMB 1.689 per 10 shares for the financial year ended 31 December 2025, underscoring its continued profitability and commitment to shareholder returns. T...
ICBC Board Tightens Governance With New Compliance Role and Committee Changes
Mar 27, 2026
Industrial and Commercial Bank of China Limited’s board met in Beijing on March 27, 2026, in a duly convened session with full director participation, to approve several changes aimed at strengthening governance and compliance oversight. The...
ICBC Sets Out Board Lineup and Committee Roles in Governance Update
Mar 27, 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 directors, including Chairman Liao Lin and Vice Chairman and Preside...
ICBC Publishes 2025 Pillar 3 Capital Management Disclosure
Mar 27, 2026
Industrial and Commercial Bank of China has released its 2025 Pillar 3 Capital Management Disclosure Report, outlining how it manages key regulatory risks and capital adequacy under prudential rules. The report details the bank’s capital com...
ICBC posts higher 2025 profit on expanding balance sheet and solid capital
Mar 27, 2026
Industrial and Commercial Bank of China reported audited 2025 results prepared under IFRS, confirming steady profitability despite a challenging operating environment. Net profit attributable to equity holders rose to RMB 368.6 billion on operatin...
ICBC Schedules Webcast for 2025 Annual Results Disclosure
Mar 19, 2026
Industrial and Commercial Bank of China Limited plans to disclose its 2025 annual results on 27 March 2026 and will host a webcast results release the same day from 17:00 to 18:00 Hong Kong time. The session will feature the president, board repre...
ICBC Sets March 2026 Board Meeting to Approve 2025 Results and Dividends
Mar 17, 2026
Industrial and Commercial Bank of China Limited has scheduled a board meeting for 27 March 2026 in Beijing to review and approve its annual results for the financial year ended 31 December 2025. The board will also consider matters related to divi...
ICBC Announces Age-Related Resignation of Chief Business Officer Song Jianhua
Feb 25, 2026
Industrial and Commercial Bank of China Limited announced that Chief Business Officer Song Jianhua has resigned from his position, effective 25 February 2026, citing age as the reason and confirming he will not continue in any role within the bank...
ICBC Board Backs 2026 Plans for Inclusive Finance, Investment and Audit
Feb 13, 2026
Industrial and Commercial Bank of China Limited’s board met in Beijing on 13 February 2026 with full attendance of its 13 directors and senior management, confirming that the meeting complied with relevant laws, regulations and the bank̵...
ICBC Fully Redeems RMB30 Billion Tier 2 Capital Bonds
Jan 21, 2026
Industrial and Commercial Bank of China Limited has fully redeemed its RMB30 billion tier 2 capital bonds issued in the National Interbank Bond Market in January 2021. Exercising its issuer redemption option, the bank repaid the bonds at face valu...
ICBC Gains Regulatory Approval for New Independent Director Appointment
Jan 15, 2026
Industrial and Commercial Bank of China Limited has announced that the National Financial Regulatory Administration has approved the qualification of Mr. Lee Kam Hung Lawrence as an independent director of the bank, and his appointment has now tak...
ICBC Discloses Board Composition and Committee Structure
Jan 15, 2026
Industrial and Commercial Bank of China Limited has disclosed the current composition of its board of directors, which includes a mix of executive, non-executive and independent non-executive directors led by Chairman Liao Lin and Vice Chairman an...
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.