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Industrial And Commercial Bank Of China Ltd Class A 601398 Stock Quote

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Morningstar‘s Stock Analysis 601398

Valuation
Currency in CNY
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Will China's Mortgage Boycotts Spread and Trigger Financial Crisis?

Iris Tan, CFA Senior Equity Analyst

Analyst Note

| Iris Tan, CFA |

We maintain our fair value estimates for the majority of our Chinese bank coverage after the media reported an increasing number of homebuyers across China are refusing to repay mortgage loans for delayed projects. While we expect the imminent impact on banks' credit quality is small, the news reflects challenging liquidity conditions for private developers and weak consumer confidence. We believe this may lead to a weak recovery of the wealth management business—especially for private bank business—as investors are likely to have little mood for financial products linked to the property sector. Hence, we modestly lower fair value estimates for the two retail-oriented banks China Merchants Bank, or CMB, to HKD 68 from HKD 70 per share; and Ping An Bank, or PAB, to CNY 24 from CNY 26 per share, to factor in lower wealth-management-related income growth in 2022.

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Key Statistics 601398

Company Profile 601398

Business Description

ICBC is headquartered in Beijing and founded in 1984, the bank listed its shares in mainland China and Hong Kong in 2006. It is China's largest by asset scale and by share of lending and deposits. Central Huijin Investment (China's sovereign wealth fund manager) and China's Ministry of Finance are ICBC's two largest shareholders, each with a stake of around 35%. ICBC operates 16,270 outlets. Among these outlets, 417 outlets are located in 42 countries and regions overseas. Corporate banking, retail banking, and wholesale banking accounted for 43%, 42%, and 14% of total revenue, respectively; and 33%, 46%, and 20% of profit before tax in 2021. Overseas banking and other business contributed 15% of total revenue and 11% of profit before tax in 2021.

Contact
3 Garden Road, 33rd Floor, ICBC Tower
Hong Kong, Hong Kong
T +852 25881188
Industry Banks - Diversified
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type
Employees 434,089