ICBC's First-Half Net Profit Rose 1.2% on Gains From Bond Investments

By Kosaku Narioka

Industrial & Commercial Bank of China said Wednesday that first-half net profit rose 1.2% from a year earlier, thanks partly to gains from bond investments.

The Chinese bank said net profit rose to 170.11 billion yuan ($23.36 billion) for the six months ended June 30 from CNY168.11 billion a year earlier. That missed the estimate of CNY176.55 billion from a poll of analysts by Visible Alpha.

First-half net trading income more than doubled to CNY9.87 billion from CNY4.635 billion a year earlier, mainly due to an increase in bond investment income. Net gains on financial investments also climbed 76% to CNY12.66 billion, mainly as a result of higher valuation of bonds and funds. Income tax expense decreased from a year earlier.

Meanwhile, net interest income decreased 3.9% from a year earlier to CNY336.99 billion, as loan interest rates in the country have fallen in recent quarters. Net fee and commission income also dropped 3.4% to CNY73.465 billion.

First-half impairment losses on assets fell 8.7% from a year earlier to CNY122.255 billion. Its non-performing loan ratio stood at 1.36% at the end of June, compared with 1.38% at the end of December.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 30, 2023 05:26 ET (09:26 GMT)

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