(14 April 2014 – China) Strong non-interest income growth has helped Industrial and Commercial Bank of China (ICBC) achieve a FY13 net profit of RMB262.6 billion (A$45 billion), up 10.2 percent year-on-year.
According to CCB International (owned by China Construction Bank) non-interest income growth was 21.2 percent year-on-year.
CCB said ICBC’s net interest margin (NIM) was down 9 basis points as yields declined on the back of re-pricing after rate cuts in 2012.
The non-performing loans ratio climbed 9 basis points, but could have been distorted by write-offs and NPL-packed sales.
“ICBC, seeking a better recovery rate, seems more willing to resolve NPLs by itself than selling to AMCs,” CCB reported.
CCB International also noted ICBC had weathered recent banking industry changes quite well and has taken strides to restructure its business, including boosting fee income to achieve stable revenue; andimposing stringent cost controls on funding and operating costs.