Equity Analysis /

CN : ICBC-A - Predictably solid recovery in net profit

    Michael Chang
    Michael Chang

    Equity Research Analyst, Banks and Insurance

    30 August 2021
    Published byCGS-CIMB

    2Q21 net profit growth rebounded to 20.9% yoy (1Q21: 1.5%), driven by falling impairment charges and accelerating PPOP growth. 2Q21 asset quality continued to improve and provisioning buffers further rose. 1H21 cost-to-income ratio of 22.3% remains the lowest among peers. 1H21 domestic mortgage mix was 31.6% (-0.9% pt hoh). Upgrading to Add due to valuations; TP unchanged at Rmb5.60.