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Industrial & Commercial Bank of China (IDCBY)
OTHER OTC:IDCBY
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Industrial & Commercial Bank of China
(OTC:IDCBY)
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Rating:77Outperform
Price Target:
$16.50
â–²(13.48% Upside)
Industrial & Commercial Bank of China scores well due to its strong financial performance and solid earnings call results, which highlight growth in key sectors and international expansion. The valuation is attractive with a low P/E ratio and high dividend yield. However, technical analysis indicates bearish momentum, which slightly offsets the overall positive outlook.
Industrial & Commercial Bank of China (IDCBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$339.52B
Dividend Yield5.27%
Average Volume (3M)2.43K
Price to Earnings (P/E)5.2
Beta (1Y)0.26
Revenue Growth-2.99%
EPS Growth0.95%
CountryUS
Employees415,159
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.65
Shares Outstanding4,339,702,600
10 Day Avg. Volume5,191
30 Day Avg. Volume2,433
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap3.45
Enterprise Value/Revenue0.98
Enterprise Value/Gross Profit1.54
Enterprise Value/Ebitda3.69
Forecast
1Y Price Target
$16.50Price Target Upside13.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Industrial & Commercial Bank of China Business Overview & Revenue Model
Company DescriptionIndustrial 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 Operations segments. The Corporate Banking segment offers financial products and services to corporations, government agencies, and financial institutions. Its products and services include corporate loans, trade financing, deposit taking activities, corporate wealth management services, custody activities, and various corporate intermediary services. The Personal Banking segment provides financial products and services to individual customers. This segment's products and services comprise personal loans and cards, deposits, and personal wealth management and intermediary services. The Treasury Operations segment is involved in the money market transactions, investment securities, and foreign exchange transactions businesses, as well as in the holding of derivative positions. It also offers e-banking services, investment banking, financial leasing, and insurance services. The company was founded in 1984 and is based in Beijing, the People's Republic of China.
How the Company Makes MoneyICBC generates revenue primarily through interest income from loans and advances to customers, which constitute a significant portion of its earnings. Additionally, the bank earns fees and commissions through its wealth management services, trade financing, and various advisory services in investment banking. The bank also profits from its treasury operations, including foreign exchange and securities trading. Key revenue streams include interest on corporate loans, personal loans, and mortgages, alongside transaction fees from banking services. Strategic partnerships, such as those with multinational corporations and government entities, also enhance its earnings potential by expanding its service offerings and client base.
Industrial & Commercial Bank of China Earnings Call Summary
Earnings Call Date:Aug 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted steady growth and strong performance in key areas like technology and green finance, as well as international expansion. However, challenges such as a narrowing net interest margin and pressure in the retail loan sector were noted. Overall, the bank demonstrated resilience and adaptability in a challenging environment.Q2-2025 Updates
Positive Updates
Steady Growth in Operating Results
Total assets reached CNY 52 trillion, loans exceeded CNY 30 trillion, and deposits from customers were nearly CNY 37 trillion. Operating income was CNY 409.1 billion, up by 1.8%.
Solid Financial Performance
Net profit reached CNY 168.8 billion, ROE was 8.82%, and the bank distributed CNY 109.8 billion in cash dividends. Dividend yield for A and H shares was 4.44% and 6.16%.
Strong Growth in Key Areas
Sci-tech loans totaled CNY 6 trillion (up 20%), green loans exceeded CNY 6 trillion (up 16.4%), and loans to core industries of the digital economy were over CNY 1 trillion (up 19.3%).
International Expansion and Diversification
International network reached 69 countries and regions. Overseas total assets were nearly USD 460 billion, contributing 9.5% to pre-tax income.
Negative Updates
Narrowing Net Interest Margin (NIM)
NIM was 1.3%, continuing to decrease, with a decline of 12 basis points year-on-year.
Challenges in Retail Loan Area
The banking industry faced downward asset quality in the retail loan area, with asset quality comparable to peers but under pressure due to market environment.
Company Guidance
During the 2025 interim results announcement call, ICBC's management highlighted several key metrics reflecting the bank's performance and strategic directions. Total assets reached CNY 52 trillion, with loans surpassing CNY 30 trillion, marking an increase of CNY 1.8 trillion. Deposits from customers climbed to nearly CNY 37 trillion, up by CNY 2.1 trillion. Operating income rose by 1.8% to CNY 409.1 billion, while net profit stood at CNY 168.8 billion. The return on assets (ROA) and return on equity (ROE) were 0.67% and 8.82%, respectively. The cost-to-income ratio was reported at 25.27%, with the net interest margin (NIM) at 1.3%. The capital adequacy ratio (CAR) was 19.54%, and the provision coverage ratio increased to 217.71%, indicating enhanced risk resilience. The non-performing loan (NPL) ratio was 1.33%, while special mention loans accounted for 1.91% of the asset quality. A cash dividend of CNY 109.8 billion was distributed, with expected interim dividends amounting to CNY 50.4 billion. Loans grew by 6.4%, and bond investments increased by 10.2%, with credit structures continually optimizing. Key sectors like technology finance and green finance saw substantial growth, with sci-tech loans up 20% to CNY 6 trillion and green loans rising 16.4% to exceed CNY 6 trillion.Industrial & Commercial Bank of China Financial Statement Overview
Summary
Industrial & Commercial Bank of China exhibits strong financial health with excellent profitability, robust capitalization, and effective cash management. Despite a slight revenue decline, the lack of debt and high liquidity positions the company well to weather economic fluctuations.Income Statement
The company demonstrates strong and consistent profitability with high gross profit and net profit margins. However, there is a slight decline in revenue over the past two years, indicating challenges in maintaining growth. The absence of EBIT and EBITDA in the latest period limits a full margin assessment.85
Very Positive
Balance Sheet
The balance sheet is robust with an impressive equity ratio, showcasing strong capitalization. The company has no debt, further enhancing financial stability. The return on equity remains high, indicating efficient use of equity. A high level of cash and cash equivalents provides liquidity strength.88
Very Positive
Cash Flow
The company shows solid free cash flow generation, although it has declined due to reduced operating cash flow. The operating cash flow to net income ratio remains strong, indicating good cash earnings quality. The free cash flow to net income ratio suggests effective cash management.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.19T | 660.39B | 838.05B | 913.56B | 939.89B | 881.36B |
| Gross Profit | 759.65B | 817.28B | 838.05B | 913.56B | 939.89B | 881.36B |
| EBITDA | 317.67B | 456.37B | 437.37B | 0.00 | 439.75B | 407.12B |
| Net Income | 363.50B | 365.86B | 363.99B | 361.13B | 348.34B | 315.91B |
Balance Sheet | ||||||
| Total Assets | 52.32T | 48.82T | 44.70T | 39.61T | 35.17T | 33.35T |
| Cash, Cash Equivalents and Short-Term Investments | 4.60T | 4.75T | 5.30T | 4.74T | 4.19T | 4.90T |
| Total Debt | 3.19T | 2.04T | 1.90T | 5.04T | 4.64T | 4.38T |
| Total Liabilities | 48.18T | 44.83T | 40.92T | 1.43T | 1.28T | 1.27T |
| Stockholders Equity | 4.11T | 3.97T | 3.76T | 3.50T | 3.26T | 2.89T |
Cash Flow | ||||||
| Free Cash Flow | 1.32T | 462.55B | 499.19B | 778.87B | 339.02B | 1.53T |
| Operating Cash Flow | 1.36T | 505.85B | 530.39B | 802.00B | 360.88B | 1.56T |
| Investing Cash Flow | -1.86T | -1.47T | -891.85B | -910.62B | -674.56B | -1.14T |
| Financing Cash Flow | 2.12T | 1.29T | 3.82T | 3.19T | -11.55B | -46.95B |
Industrial & Commercial Bank of China Technical Analysis
Negative
14.54
Price Trends
15.14
Negative
15.13
Negative
14.27
Positive
Market Momentum
-0.15
Positive
36.17
Neutral
20.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDCBY, the sentiment is Negative. The current price of 14.54 is below the 20-day moving average (MA) of 14.99, below the 50-day MA of 15.14, and above the 200-day MA of 14.27, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 36.17 is Neutral, neither overbought nor oversold. The STOCH value of 20.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IDCBY.
Industrial & Commercial Bank of China Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $245.71B | 14.31 | 10.69% | 4.64% | -2.96% | -13.66% | |
77 Outperform | $339.52B | 5.18 | 9.68% | 5.27% | -2.99% | 0.95% | |
74 Outperform | $373.24B | 14.83 | 9.46% | 2.10% | 4.95% | 20.49% | |
74 Outperform | $850.17B | 15.91 | 16.13% | 1.80% | 4.00% | 8.73% | |
74 Outperform | $174.19B | 14.67 | 9.43% | 1.39% | 0.82% | 28.48% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $258.49B | 13.84 | 11.51% | 2.03% | 0.37% | 19.89% |
* Financial Sector Average
IDCBY
Industrial & Commercial Bank of China
14.54
3.42
30.76%
BAC
Bank of America
50.29
11.03
28.09%
HSBC
HSBC Holdings
70.71
29.01
69.57%
JPM
JPMorgan Chase
307.69
98.69
47.22%
MUFG
Mitsubishi UFJ
15.18
5.14
51.20%
WFC
Wells Fargo
81.14
24.85
44.15%
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.