ICBC Reports Rise in Annual Profit on Lower Credit Costs

By Kosaku Narioka

Industrial & Commercial Bank of China reported a rise in annual net profit thanks to lower credit costs despite weaker earnings from other regular banking operations.

The Chinese bank said Friday that net profit rose 0.5% to 350.90 billion yuan, equivalent to $48.30 billion, in 2024.

Net interest income--the difference between what banks earn on loans and pay clients for deposits, and ICBC's primary source of earnings--decreased 2.7% to 637.405 billion yuan, as loan interest rates have fallen in China.

Major Chinese banks like ICBC have lowered lending rates in recent quarters as policymakers took steps to prop up a weak property market and support consumer confidence.

Net fee and commission income fell 8.3% to 109.40 billion yuan.

Meanwhile, impairment losses on assets decreased 16% to 126.66 billion yuan.

The bank's nonperforming loan ratio declined to 1.34% at the end of December from 1.36% at the end of 2023.

Write to Kosaku Narioka at [e-mail]

(END) Dow Jones Newswires

03-28-25 0604ET