Daily net profit of 1.005 billion, "Universe Bank" ICBC releases annual report

The largest bank in the industry, ICBC, disclosed its annual performance for 2024 on the afternoon of March 28.

The annual report shows that ICBC achieved an operating income of RMB 786.1 billion in 2024, with a net profit of RMB 366.9 billion, a year-on-year increase of 0.5%.

In addition, ICBC announced a dividend of RMB 1.646 per 10 shares (tax included), with a total dividend amount of approximately RMB 58.664 billion. Combined with the previously distributed interim dividend of RMB 51.109 billion, the total dividend for the year is approximately RMB 109.773 billion.

Good Cost Control

In 2024, ICBC's operating income was RMB 786.126 billion. Among this, net interest income was RMB 637.405 billion; non-interest income was RMB 148.721 billion.

The bank's total operating expenses for the year were RMB 242.155 billion, with a cost-to-income ratio of 29.43%. Provisions for asset impairment losses amounted to RMB 126.663 billion, and income tax expenses were RMB 54.881 billion, indicating good tax control.

These factors combined allowed ICBC to achieve a net profit of RMB 366.946 billion in 2024, an increase of RMB 1.830 billion from the previous year, growing by 0.5%, with an average return on total assets of 0.78% and a weighted average return on equity of 9.88%.

Stable Net Interest Margin

In terms of operating income, ICBC maintained an "80-20 structure" in 2024, with net interest income accounting for 81.1% of total operating income, totaling RMB 637.405 billion, making it the bank with the highest net interest income in the industry.

The annual report indicates that due to factors such as the reduction of the Loan Prime Rate (LPR), adjustments in existing mortgage rates, and changes in the structure of deposit terms, the net interest margin and net interest yield were 1.23% and 1.42%, respectively, adjusting by 18 basis points and 19 basis points from the previous year, showing a relatively small adjustment in the industry and overall good resilience.

Additionally, ICBC's non-performing loan ratio at the end of the year was 1.34%, down 2 basis points; the provision coverage ratio was 214.91%, up 0.94 percentage points; and the capital adequacy ratio rose to 19.39%, ranking among the top global banks.

Significant Growth in Trading Net Income

In terms of non-interest income, net fee and commission income was RMB 109.397 billion; other non-interest income was RMB 39.324 billion, an increase of RMB 7.236 billion, growing by 22.6%.

In terms of net fee and commission income, asset custody and agency payment services continued to expand, leading to an increase in related income. Meanwhile, due to the implementation of the insurance and banking integration policy and the public fund fee rate reform, income from personal wealth management, private banking, and corporate wealth management decreased; the fee rates for guarantee and commitment businesses declined, resulting in a decrease in related income.

Among other non-interest income, the increase in trading net income was mainly due to increased returns from equity instruments and bond investments, while the increase in net financial investment income was primarily due to the increase in equity instruments and fund investment net income measured at fair value with changes recognized in current profit and loss. Other operating net expenses decreased mainly due to reduced net losses from foreign exchange and currency products, while income from insurance services and operating lease business increased

Dividend Ratio Remains Stable

The board of directors of ICBC proposed to distribute a cash dividend of RMB 1.646 per 10 shares (tax included) based on approximately 356.4 billion ordinary shares for the year-end of 2024, with a total dividend amount of approximately RMB 58.664 billion.

In addition to the previously distributed interim dividend of RMB 51.109 billion, the total cash dividend for the year amounts to RMB 3.080 per 10 shares (tax included), with a total dividend amount of approximately RMB 109.773 billion.

The cash dividend ratio remains at around 31.3%, with the overall dividend ratio stable.

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