Executive Summary
Industrial and Commercial Bank of China Limited provides various banking products and services in China and internationally. More Details
Rewards
Risk Analysis
No risks detected for 1398 from our risk checks.
Snowflake Analysis
Flawless balance sheet, undervalued and pays a dividend.
Similar Companies
Share Price & News
How has Industrial and Commercial Bank of China's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1398 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 1398's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
6.8%
1398
1.2%
HK Banks
1.1%
HK Market
1 Year Return
-12.7%
1398
-14.2%
HK Banks
8.2%
HK Market
Return vs Industry: 1398 exceeded the Hong Kong Banks industry which returned -14.2% over the past year.
Return vs Market: 1398 underperformed the Hong Kong Market which returned 8.2% over the past year.
Shareholder returns
| 1398 | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.8% | 1.2% | 1.1% |
| 30 Day | 7.5% | 5.3% | 7.2% |
| 90 Day | 8.2% | 5.4% | 5.2% |
| 1 Year | -7.6%-12.7% | -9.0%-14.2% | 12.6%8.2% |
| 3 Year | -6.2%-19.9% | -10.2%-23.5% | 0.4%-10.0% |
| 5 Year | 37.8%4.7% | 21.6%-8.0% | 30.6%8.5% |
Long-Term Price Volatility Vs. Market
How volatile is Industrial and Commercial Bank of China's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
You Have To Love Industrial and Commercial Bank of China Limited's (HKG:1398) Dividend1 month ago | Simply Wall St
How Should Investors Feel About Industrial and Commercial Bank of China's (HKG:1398) CEO Remuneration?1 month ago | Simply Wall St
What Type Of Shareholders Make Up Industrial and Commercial Bank of China Limited's (HKG:1398) Share Registry?Valuation
Is Industrial and Commercial Bank of China undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 1398 (HK$4.87) is trading below our estimate of fair value (HK$12.98)
Significantly Below Fair Value: 1398 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1398 is good value based on its PE Ratio (5.2x) compared to the HK Banks industry average (6.2x).
PE vs Market: 1398 is good value based on its PE Ratio (5.2x) compared to the Hong Kong market (11.2x).
Price to Earnings Growth Ratio
PEG Ratio: 1398 is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: 1398 is overvalued based on its PB Ratio (0.5x) compared to the HK Banks industry average (0.4x).
Next Steps
Future Growth
How is Industrial and Commercial Bank of China forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
6.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1398's forecast earnings growth (6.4% per year) is above the savings rate (1.6%).
Earnings vs Market: 1398's earnings (6.4% per year) are forecast to grow slower than the Hong Kong market (21.9% per year).
High Growth Earnings: 1398's earnings are forecast to grow, but not significantly.
Revenue vs Market: 1398's revenue (7.5% per year) is forecast to grow slower than the Hong Kong market (13.6% per year).
High Growth Revenue: 1398's revenue (7.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 1398's Return on Equity is forecast to be low in 3 years time (10.8%).
Next Steps
Past Performance
How has Industrial and Commercial Bank of China performed over the past 5 years?
2.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1398 has high quality earnings.
Growing Profit Margin: 1398's current net profit margins (43.6%) are lower than last year (47.7%).
Past Earnings Growth Analysis
Earnings Trend: 1398's earnings have grown by 2.1% per year over the past 5 years.
Accelerating Growth: 1398's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 1398 had negative earnings growth (-6.8%) over the past year, making it difficult to compare to the Banks industry average (-7.2%).
Return on Equity
High ROE: 1398's Return on Equity (10.3%) is considered low.
Next Steps
Financial Health
How is Industrial and Commercial Bank of China's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: 1398's Assets to Equity ratio (11.9x) is moderate.
Allowance for Bad Loans: 1398 has a sufficient allowance for bad loans (195%).
Low Risk Liabilities: 92% of 1398's liabilities are made up of primarily low risk sources of funding.
Loan Level: 1398 has an appropriate level of Loans to Assets ratio (54%).
Low Risk Deposits: 1398's Loans to Deposits ratio (63%) is appropriate.
Level of Bad Loans: 1398 has an appropriate level of bad loans (1.6%).
Next Steps
Dividend
What is Industrial and Commercial Bank of China current dividend yield, its reliability and sustainability?
6.36%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1398's dividend (6.36%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).
High Dividend: 1398's dividend (6.36%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.6%).
Stability and Growth of Payments
Stable Dividend: 1398's dividends per share have been stable in the past 10 years.
Growing Dividend: 1398's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (33.1%), 1398's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 1398's dividends in 3 years are forecast to be well covered by earnings (32.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.8yrs
Average management tenure
CEO
Shu Gu (53 yo)
4.08yrs
Tenure
CN¥707,200
Compensation
Mr. Shu Gu has been the President and Executive Director of Industrial & Commercial Bank of China Ltd. (formerly known as Industrial and Commercial Bank of China Ltd.) since October 2016 and December 29, 2...
CEO Compensation Analysis
Compensation vs Market: Shu's total compensation ($USD107.55K) is below average for companies of similar size in the Hong Kong market ($USD830.51K).
Compensation vs Earnings: Shu's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 1.5yrs | CN¥469.90k | no data | |
| Vice Chairman & President | 4.08yrs | CN¥707.20k | no data | |
| Senior EVP | 0.33yr | CN¥54.00k | no data | |
| Senior Executive Vice President | 0.67yr | no data | no data | |
| Board Secretary | 4.33yrs | CN¥1.11m | no data | |
| Corporate Strategy & Investor Relations | no data | no data | no data | |
| Senior Executive Vice President | 0.33yr | CN¥50.00k | no data | |
| Chief Responsible Officer of Internal Audit Bureau & Employee Supervisor | 4.42yrs | no data | no data | |
| Chief Business Officer | 0.75yr | no data | no data | |
| Chief Business Officer | 0.75yr | no data | no data | |
| Senior Executive Vice President | 0.083yr | no data | no data |
0.8yrs
Average Tenure
54.5yo
Average Age
Experienced Management: 1398's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 1.5yrs | CN¥469.90k | no data | |
| Vice Chairman & President | 4.08yrs | CN¥707.20k | no data | |
| Senior EVP | 0.33yr | CN¥54.00k | no data | |
| Chief Responsible Officer of Internal Audit Bureau & Employee Supervisor | 4.42yrs | no data | no data | |
| Independent Non-Executive Director | 5.58yrs | CN¥475.40k | no data | |
| Independent Non-Executive Director | 4.58yrs | CN¥446.30k | no data | |
| Independent Non Executive Director | 3.67yrs | CN¥444.60k | no data | |
| Independent Non-Executive Director | 1.58yrs | CN¥307.50k | no data | |
| Independent Non-Executive Director | 1.92yrs | CN¥422.90k | no data | |
| Chairman of the Board of Supervisor | no data | no data | no data | |
| Non-Executive Director | 5.75yrs | no data | no data | |
| Non-Executive Director | 3.25yrs | no data | no data |
3.7yrs
Average Tenure
57yo
Average Age
Experienced Board: 1398's board of directors are considered experienced (3.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Industrial and Commercial Bank of China Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Industrial and Commercial Bank of China Limited
- Ticker: 1398
- Exchange: SEHK
- Founded: 1984
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: HK$2.023t
- Shares outstanding: 356.41b
- Website: https://www.icbc-ltd.com
Number of Employees
Location
- Industrial and Commercial Bank of China Limited
- 55 Fuxingmennei Avenue
- Xicheng District
- Beijing
- Beijing Province
- 100140
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 360036 | SHSE (Shanghai Stock Exchange) | PREF02 | CN | CNY | No data | |
| 601398 | SHSE (Shanghai Stock Exchange) | Domestic Shares | CN | CNY | Oct 2006 | |
| 1398 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Oct 2006 |
| ICK | DB (Deutsche Boerse AG) | Yes | Foreign Shares-Foreign Listed | DE | EUR | Oct 2006 |
| IDCB.F | OTCPK (Pink Sheets LLC) | Yes | Foreign Shares-Foreign Listed | US | USD | Oct 2006 |
| 1398 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Oct 2006 |
| 601398 | XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect) | Domestic Shares | CN | CNY | Oct 2006 | |
| 1398 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Oct 2006 |
| ICK | WBAG (Wiener Boerse AG) | Yes | Foreign Shares-Foreign Listed | AT | EUR | Oct 2006 |
| IDCB.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Oct 2008 | |
| ICKB | DB (Deutsche Boerse AG) | UNSPONSORED ADR | DE | EUR | Oct 2008 |
Biography
Industrial and Commercial Bank of China Limited provides various banking products and services in China and internationally. It operates through Corporate Banking, Personal Banking, and Treasury Operations...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/27 10:20 |
| End of Day Share Price | 2020/11/27 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.