2024.0328

Number of words in this article:1029, reading time is about 2 minutes

introduction：息差收窄继续拖累营收增速。

** Author| ** First Finance Qi Ning

On the evening of March 27, ICBC (601398.SH, 01398.HK)'s 2023 results were released. Last year, it achieved operating income of 806.458 billion yuan (International Financial Reporting Standards, the same below), a year-on-year decrease of 4.3%, and achieved a net profit of 365.116 billion yuan, an increase of 0.83% over the previous year. The net profit attributable to shareholders of the parent company was 363.993 billion yuan, an increase of 0.79%.

ICBC's board of directors recommended paying a cash dividend on ordinary shares for 2023, at RMB 3.064 (including tax) for every 10 shares, with a total dividend of approximately RMB 109.203 billion.

As of the end of 2023, ICBC's total assets were 44.70 trillion yuan, an increase of 12.8% from the end of the previous year. Among them, the total amount of loans and advances to customers was 26.09 trillion yuan, an increase of 12.4%. Among them, personal loans increased by 5.1%, personal consumer loans and operating loans increased by 95.844 billion yuan and 417.096 billion yuan respectively, and personal housing loans decreased by approximately 143.5 billion yuan.

During the same period, the bank's total liabilities were 40.92 trillion yuan, an increase of 13.4% from the end of the previous year. Among them, total customer deposits were 33.52 trillion yuan, an increase of 12.2%. Among them, corporate deposits increased by 1.54 trillion yuan, an increase of 10.5%, and personal deposits increased by 2.02 trillion yuan, an increase of 13.9%. In terms of term structure, time deposits increased by 4.18 trillion yuan, an increase of 27.6%, and demand deposits decreased by 617.111 billion yuan, a decrease of 4.4%.

Looking specifically at the income structure, narrowing interest margins continue to drag down revenue growth. As of the end of last year, ICBC's net interest income was 655.013 billion yuan, down 5.3%, accounting for 81.2% of revenue; non-interest income was 151.445 billion yuan, an increase of 0.7%. Regarding the decline in net interest income, ICBC said that mainly due to factors such as the reduction in LPR (Loan Market Quotation Rate) and changes in deposit term structure, the net interest margin and net interest margin both fell by 31 basis points, to 1.41% and 1.61% respectively. Compared with the end of the third quarter of last year, the two indicators are still further declining, falling by 4BP and 6BP respectively in the fourth quarter.

Among non-interest income, net fee and commission income was 119.357 billion yuan, a decrease of 7.7%, and other non-interest income increased by 52.5%. Among net fee and commission income, personal wealth management and private banking decreased by 14%, and corporate wealth management decreased by 16.9%. ICBC said in its financial report that due to factors such as fluctuations in the capital market, changes in investor risk appetite, and reform of public fund rates, income from personal financial management and private banking, public financial management, and asset custody decreased; guarantee and commitment business rates dropped and revenue decreased.

In terms of asset quality, at the end of the reporting period, the balance of non-performing loans of ICBC was 353.502 billion yuan, and the non-performing loan ratio was 1.36%, a decrease of 0.02 percentage points from the end of the previous year. Among them, the corporate non-performing loan ratio was 1.81%, a decrease of 0.15 percentage points; the personal non-performing loan ratio was 0.70%, an increase of 0.10 percentage points. The provision coverage ratio reached 213.97%, an increase of 4.5 percentage points from the end of the previous year.

At the end of the reporting period, ICBC's core tier-1 capital adequacy ratio was 13.72%, the tier-1 capital adequacy ratio was 15.17%, and the capital adequacy ratio was 19.10%, which declined slightly to varying degrees from the end of the previous year.

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