ICBC 1398

[behappyalways]

助華人黑幫　涉款至少3.5億
馬德里中國工行　5高層洗錢被捕
http://hk.apple.nextmedia.com/internati ... 9/19496926

[winston]

not vested

Brokers' Ratings & TPs to ICBC (Table)

ICBC (01398.HK) -0.070 (-1.628%) Short selling $128.88M; Ratio 18.874% will announce FY15 results next Wednesday (30 March).

According to 10 brokers, their net profit forecast for last year ranged RMB275.7-278.1 billion, up less than 1% over a year-ago period.

Median was RMB276.7 billion, up 0.32% yearly.

12 brokers' ratings and target prices to ICBC are consolidated as follows:

Broker/Rating/Target Price (HK$)

Bernstein/Outperform/8.5
JP Morgan/Overweight/6.6
Morgan Stanley/Overweight/6.3
BOCOM International/Long-term Buy/5.61
Bank of America Merrill Lynch/Buy/5.9
Goldman Sachs/Buy/5.05
Macquarie/Outperform/4.9
BNP Paribas/Buy/4.9
Daiwa/Outperform/4.5
Credit Suisse/Neutral/4.4
HSBC/Hold/4.3
UBS/Neutral/4.2

Source: AAStocks Financial News

[winston]

not vested

Brokers Expect ICBC 2015 Profit to be Approx. RMB275.7B-278.1B

ICBC (01398.HK) -0.070 (-1.628%) Short selling $128.88M; Ratio 18.874% is scheduled to release its 2015 results next Wednesday (30 March).

Based on the forecast of 10 brokers, the net profit is expected to be RMB275.7 billion to RMB278.1 billion, staying flat year on year or recording a rise of less than 1%.

Broker/ 2015 Net Profit Forecast (RMB)/ YoY Change
JP Morgan/ 278.117 billion/ +0.8%
BOCOM International/ 277.1 billion/ +0.5%
Credit Suisse/ 276.858 billion/ +0.4%
Daiwa/ 276.808 billion/ +0.4%
CMS (HK)/ 276.765 billion/ +0.3%
UBS/ 276.636 billion/ +0.3%
BNP Paribas/ 276.439 billion/ +0.3%
HSBC/ 276 billion/ +0.1%
Morgan Stanley/ 275.881 billion/ largely stayed flat
Macquarie/ 275.735 billion/ largely stayed flat

Based on 2014 full year profit of RMB275.811 billion

Source: AAStocks Financial News

[winston]

ICBC slashes dividend payout after flat net

by Daisy Wu

Industrial and Commercial Bank of China (1398) cut its dividend payout ratio to the lowest level among its peers after it posted its weakest profit growth since it listed in Hong Kong in 2006.

The world's largest bank by total assets and market cap reported flat earnings, with 2015 net profit up by a miniscule 0.48 percent to 2.77 trillion yuan (HK$3.32 trillion) year-on-year.

A final dividend of 23.33 fens was recommended, 8.7 percent lower year-on-year. Payout ratio was at 30.3 percent, the lowest level since its listing in the SAR.

"In the current environment, it is even appreciable to earn any profit. Our focus should be on risk control," chairman Jiang Jianqing said.

"In 2015, financial risks emerged in multiple fields and threatened to spread under the pressure of downward trends in the economy, declining corporate profits and tumbling capital markets," the bank said in a filing to the local bourse.

Its non-performing loan ratio rose by 0.37 percentage points to 1.5 percent, its worst level in six years. Allowance for impairment losses surged 53.3 percent to 86.99 billion yuan, while allowance for NPLs slid 50 percentage points to 156.34 percent.

"Non-performing loans of the manufacturing industry and the wholesale and retail industry increased by a large margin, caused by increasing macroeconomic downward pressure, falling market demand, declining ex-factory price of products and excess of low-end capacity," the lender said.

But core Tier 1 capital adequacy ratio improved to 12.87 percent from 11.92 percent in 2014.

Operating income rose 5.3 percent to 668.73 billion yuan, with net interest income, representing 76 percent of total revenue, up 2.9 percent and non- interest income up by 13.8 percent.

Net interest margins the difference between a bank's borrowing rate and interest earned on loans narrowed by 19 basis points to 2.47 percent.

ICBC's share price rose 3.06 percent to HK$4.38 before it reported its results yesterday.

Source: The Standard

[winston]

not vested

<Post-Result>Brokers' Ratings & TPs to ICBC (Table)

ICBC (01398.HK) announced a net profit of RMB277.131 billion yesterday (30 March), up 0.48% yearly, slightly higher than the median market forecast of RMB276.7 billion.

EPS equaled 77 fen. The final dividend was slashed to 23.33 fen. The share price softened today.

11 brokers' ratings and target prices to the bank are consolidated as follows:

Broker/Rating/Target price (HK$)

Nomura/Buy/6.92
Citigroup/Buy/6.6
JP Morgan/Overweight/6.6
Morgan Stanley/Overweight/6.3
CICC/Neutral/5.24
Goldman Sachs/Buy/5.05
UOBKayHian/Buy/5.05
BNP Paribas/Buy/4.9
Macquarie/Outperform/4.9
HSBC/Hold/4.3->4.5
UBS/Neutral/4.2

Source: AAStocks Financial News

[winston]

not vested

ICBC bites loans bullet to post profit

Industrial & Commercial Bank of China (1398), the world's largest lender by assets, avoided posting a quarterly drop in profit after letting its buffer for covering bad loans fall below a regulatory minimum.

The bank's provisions for bad loans stood at 141.2 percent of existing nonperforming credit, compared with a regulatory minimum of 150 percent.

ICBC's net income rose 0.6 percent to 74.76 billion yuan (HK$89.5 billion) in the three months ended March 31 as its lending margin contracted and its soured debt surged.

It is the fourth straight quarter that the lender has failed to achieve a profit gain of even 1 percent and the profit number would have been worse if it had not breached the provision rule.

ICBC's nonperforming loans surged 14 percent from the start of the year to 204.7 billion yuan as of March 31, accounting for 1.66 percent of total lending.

The bank set aside 23 billion yuan of provisions against bad loans in the quarter, 11 percent more than a year earlier.

Source: BLOOMBERG

[winston]

not vested

ICBC may revamp structure amid downturn

by Daisy Wu

The Industrial and Commercial Bank of China (1398) may modify its organizational structure for more efficiency if the economy takes a downturn, new chairman Yi Huiman said.

On Tuesday, Yi replaced 63-year-old Jiang Jianqing who resigned due to his advanced age.

Like all other mainland banks, state- owned ICBC has a five-tier structure, including a headquarters and four tiers of branches and sub-branches under it, Yi told The Asian Banker.

"These five tiers will to some degree reduce the enforcement of the group's strategies. .. The bank may reclassify its businesses. We will have our branches or outlets conduct the relatively simple businesses, but we will have a flat decision making for the relatively complex businesses. In that way, we will be able to further improve ourselves no matter the business climate."

The whole process of risk monitoring and risk control will have to be modified and updated with the help of big data as well as information technology, said Yi.

He also said China's largest bank will further reduce loans to state-owned enterprises.

"We have greatly reduced the portfolio because we noticed that the government is also trying to reorganize the SOEs, trying to get some of the SOEs to be listed, and encourage modern corporate governance. Our lending position will therefore be dictated by these market decisions."

Yi added that SOEs and special purpose vehicles backed by the government now account for 30 percent of total loans.

Source: The Standard

[winston]

by behappyalways:-

China's Biggest Lender Rattled by Electronic Bills Scam

Two billion yuan worth of electronic bills of exchange issued by ICBC on behalf of a provincial bank were fakes due to lack of due diligence, sources say

By Han Yi and Wu Hongyuran

(Beijing) – Police are probing China's largest lender by assets, the Industrial and Commercial Bank of China (ICBC), for allowing ex-employees of another small bank to use fake documents to open an account to issue, and later sell, 2 billion yuan worth of fake bank bills, ICBC said on August 11.

Source: Caixin

http://english.caixin.com/2016-08-12/100977214.html

[behappyalways]

ICBC Halts Bad-Loan Increases With $6.3 Billion of Write-Offs
http://www.bloomberg.com/news/articles/ ... ar-earlier

[winston]

not vested

ICBC: What Bad Debt? UBS Upgrades, Sees Another 20% Upside

By Shuli Ren

Lured by dividend yields, mainland Chinese investors are buying up China’s biggest banks such as China Construction Bank (939.Hong Kong) and Industrial and Commercial Bank of China (1398.Hong Kong) through the Hong Kong Shanghai Connect this year. ICBC has soared almost 30% from its mid-May low.

UBS is singing praises to ICBC this morning, upgrading this stock to Buy with a new price target of 6 Hong Kong dollars. UBS’s price target implies another 22% upside.

The central theme of analyst Lucy Feng‘s upgrade is that ICBC will have no problem maintaining its payout ratio of 30%, or dividend yield around 5.2%.

This is because ICBC has limited exposure to bad debt, on and off-balance sheet. Feng wrote:

Compared with its major China bank peers, ICBC has low exposure to:
1) industries with overcapacity (1% of total loans compared with peers’ approximately 2%); and
2) trust beneficiary rights (TBRs) and directional asset management plans (DAMPs), which at 0.34% of total assets is the lowest among peers.

Even after the recent rally, ICBC is trading at only 0.8 times book, because foreign investors are worried about large loan book write-downs.

ICBC’s book value is solid, argues UBS. The bank estimates that ICBC’s earnings could allow about 5.6% of its loans going bad, without having any impact on its book value.

Another reason why foreign investors do not like Chinese banks is their falling profit margins as the People’s Bank of China cut its benchmark interest rates and liberalizes the banking sector. Don’t forget ICBC has a strong presence in retail banking. Retail lending accounted for about 30% of ICBC’s total lending in the first-half this year.

“We forecast ICBC’s retail lending to grow 15% pa in 2016-17E, mainly supported by the strong demand in residential mortgage growth,” wrote Feng. Strong retail presence also means firm margins. UBS sees ICBC’s net interest margin to drop only 26 basis points this year to 2.1% and remain at this level in the next two years.

UBS’s price target implies 1 time their 2016 book estimate.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... 20-upside/