CitigroupPublished a study report stating that
ICBC(601398) (01398) with a "Buy" rating and a price target of HK$6.99, profit before provisions rose 5.4% year-on-year to 331 billion yuan and net profit after tax rose 9.9% year-on-year to 163.5 billion yuan in the first half of this year.
According to the report, profit before provisions rose 8.5% year-on-year in the second quarter of this year due to strong trading earnings, solid loan growth and a lower cost-to-income ratio, and net profit after tax rose 20.9% year-on-year to 77.7 billion yuan in the second quarter of this year due to lower credit costs, both in line with expectations.
According to the bank, the main positive factors of the company at present are that deposits increased by 2.5% quarterly in the second quarter of this year, which was higher than loans increased by 2.4% quarterly, resulting in the loan-to-deposit ratio dropping by 11 basis points quarterly to 75.2% in the second quarter of this year; Loan growth remained strong in the second quarter of the year, up 11.2% year-over-year, driven by, among other things, corporate loan growth and strong small business loan growth on a low base.
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