ICBC 1398

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

ICBC (01398.HK) announced its results for the first three quarters ended 30 September 2016 last Friday (28 October).

Net profit amounted to RMB222.792 billion, up 0.46% yearly.

EPS equaled RMB0.63.

Our website summarized the investment ratings and target prices from nine brokers:

Broker/ Investment Rating/ Target Price (HK$)
Bernstein/ Outperform/ 9.3
Credit Suisse/ Outperform/ 6.3
Bank of America Merrill Lynch/ Buy/ 6.16
JP Morgan/ Overweight/ 6.15
UBS/ Buy/ 6
Citigroup/ Buy/ 5.83
UOB Kay Hian/ Buy/ 5.15
BOC International/ Hold/ 5.15->5
HSBC/ Hold/ 4.8

Source: AAStocks Financial News

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Its net profit fell 0.64 percent in 2016's fourth quarter as margins shrank, but for the whole of the year it went to 278.2 billion yuan (HK$313.8 billion) from 277.1 billion yuan in 2015.

Its shares closed at HK$5.12, and any dip below HK$5 would be a bargain.

Source: Dr Check, The Standard

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ICBC sees NPL ratio rise to 1.62pc

by Carrie Chen

State-owned Industrial and Commercial Bank of China (1398), the world's largest lender, saw the allowance to non- performing loans fall 19.65 percentage points to 136.69 percent, lower than the minimum requirement.

Non-performing loans ratio increased 12 basis points to 1.62 percent by the end of last year, but remained the same as the end of the third quarter last year.

The amount of non-performing loans increased 18 percent to 211.8 billion yuan (HK$239.3 billion) last year.

Chairman Yi Huiman said the amount of new additional non- performing loans decreased every quarter last year, and he expected better asset quality this year.

"Our allowance to non-performing loans is still lower than the industrial level," said Yi.

ICBC said net profit grew 0.4 percent to 278.25 billion yuan last year, while net interest income fell 7 percent to 471.8 billion yuan, and net fee and commission income remained relatively flat at 145 billion yuan.

Net interest margin narrowed down 31 basis points to 2.16 percent.

President Gu Shu said the bank lent an additional 700 billion yuan of individual mortgage loans last year, over half of which were issued in third- and fourth-tier cities.

ICBC declared a final dividend of 2.34 yuan per share.

Source: The Standard

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by behappyalways:-

Temasek trims stake in ICBC, says remains confident in Chinese banks

Source: CNBC

http://www.cnbc.com/2017/05/19/temasek- ... banks.html

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June 14, 2017

<Research Report>M Stanley: ICBC Valuation Sees Further Upside; Rated Overweight

Morgan Stanley rated ICBC (01398.HK) at Overweight with a target price of $7.2.

The research house said that the H shares of ICBC have lagged behind other large banks and CM BANK (03968.HK) since 2016 as the market focused on its provision.

It is believed that ICBC's H shares have significant upside since the bank is now trading at 0.8x 2017 P/B which underperformed peers.

ICBC's NPL ratio, overdue and special mention loans showed an improvement in the first quarter of 2017.

Even though its NPL coverage ratio was still below 150%, the bank is not under regulatory pressure.

It is anticipated to see increasing coverage this year, with eased NPL formation, while credit costs largely maintain steady.

Source: AAStocks Financial News

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Industrial & Commercial Bank Of China (1398 HK)

Key Takeaways From Reverse Roadshow

From a macro perspective, the banking sector is undergoing gradual deleveraging.

New WMP regulations are being formalised but implementation will take some time due to the difficulty in measuring comprehensively both on- and off-balance sheet WMPs.

ICBC overcomes challenges in the new normal by transforming its branch network and harnessing the power of IT.

Maintain BUY. Target price: HK$5.95.

Source: UOBKH

https://research.uobkayhian.com/content ... 61fc331588

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<Research Report>Macquarie Confident in Execution of ICBC Management; Kept as Top Pick for CN Banks

Macquarie, in its report, said ICBC (01398.HK) held a reverse roadshow last week.

The company management went through each topic to discuss various risks. After the meetings, Macquarie's confidence in the underwriting quality and execution capability of the new management has become stronger.

ICBC and CCB (00939.HK) are Macquarie's top picks among China banks. The broker kept the rating at Outperform for ICBC with target price of $6.3.

Macquarie said NIMs could have bottomed, despite slower asset growth due to base effect.

The bank could benefit from the recent tightness in the SHIBOR market, given the strong deposit franchise while lending spreads have also started widening.

The broker said ICBC will also increase the penetration in the retail business with its strong IT platform. In particular, they saw opportunities from consumer loans and auto loans.

Source: AAStocks Financial News

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How China’s biggest bank became ensnared in a sprawling money laundering probe

When Chinese residents of Spain needed to get piles of illicit cash back home, police allege, they found an accomplice in the Industrial and Commercial Bank of China. Confidential court filings, including wiretap transcripts, detail how the bank allegedly helped launder hundreds of millions of euros.

The investigation has so alarmed Beijing that China’s top official in Madrid has publicly pressured Spanish officials to conclude the inquiry, warning that failure to do so would harm economic relations.

“The Spanish banks aren’t processing the transfers when we bring them the invoices, but ICBC processes them whenever we do business with them.”

If the bank is found to be complicit, it could lead to a hefty fine.

In the event of a trial, the bank would have to endure a public airing of its alleged links with suspected criminal networks in Spain and China.

But the bigger danger for the state-run ICBC is that its European banking license could be withdrawn. ICBC is concerned the investigation could affect its European headquarters in Luxembourg.

Source: Reuters

http://www.reuters.com/investigates/spe ... cbc-spain/

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<Post Result>Brokers' Latest Ratings & TPs on ICBC (Table)

ICBC (01398.HK) slumped over 3% this morning.

The bank announced the interim results ended June 2017.

The net profit elevated 1.85% yearly to RMB152.995 billion, meeting the street consensus.

Basic EPS equaled 43 fen. No interim dividend was declared.

During the period, the turnover grew 2.4% yearly to RMB336.739 billion.

Net interest income rose 7.1% to RMB250.922 billion.

Brokers updated their ratings and target prices:

Brokers/ Ratings/ Target prices(HK$)
BOCOM International/ Long-term Buy->Neutral/ 5.72->6.85
Credit Suisse/ Outperform/ 6.4
JPMorgan/ Overweight/ 6.4
Macquarie/ Outperform/ 6.3
Bank of America Merrill Lynch/ Buy->Neutral/ 5.82->6.3
Citigroup/ Buy/ 6.1

Source: AAStocks Financial News

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<Research Report>JPM Rates ICBC (01398.HK) at Overweight with TP Cut to $8

Based on ICBC (01398.HK)'s 1Q results, JP Morgan trimmed the latter's 2018E-2020E EPS by 1%, 3.5% and 8.2% with target price cut to $8 from $8.4 and rating kept Overweight.

Source: AAStocks Financial News