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Industrial and Commercial Bank of China

SEHK:1398
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1398
SEHK
HK$1,962B
Market Cap
  1. Home
  2. HK
  3. Banks
Company description

Industrial and Commercial Bank of China Limited provides various banking products and services primarily in China and internationally. The last earnings update was 8 days ago. More info.


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1398 Share Price and Events
7 Day Returns
-1.3%
SEHK:1398
-0.7%
HK Banks
0.2%
HK Market
1 Year Returns
-13.3%
SEHK:1398
-18.5%
HK Banks
-22%
HK Market
1398 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Industrial and Commercial Bank of China (1398) -1.3% -6.2% -14.2% -13.3% 2.8% -17.9%
HK Banks -0.7% -6.1% -12.9% -18.5% -12.5% -26.2%
HK Market 0.2% -10.8% -16.5% -22% -13.4% -28.8%
1 Year Return vs Industry and Market
  • 1398 outperformed the Banks industry which returned -18.5% over the past year.
  • 1398 outperformed the Market in Hong Kong which returned -22% over the past year.
Price Volatility
1398
Industry
5yr Volatility vs Market

1398 Value

 Is Industrial and Commercial Bank of China undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Industrial and Commercial Bank of China to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Industrial and Commercial Bank of China.

SEHK:1398 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 18 analysts.
= Stable Book Value * Return on Equity
= CN¥8.18 * 11.9%
CN¥0.97
Book Value of Equity per Share Weighted future Book Value estimates from 18 analysts. CN¥8.18
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year HK Government Bond Rate 1.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1398
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 1.6%
Equity Risk Premium S&P Global 6.3%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.49
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.486 (1 + (1- 25%) (60.87%))
1.24
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.24
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.55% + (1.24 * 6.33%)
9.4%

Discounted Cash Flow Calculation for SEHK:1398 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Industrial and Commercial Bank of China is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:1398 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.9% – 9.4%) * CN¥8.18)
CN¥0.20
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥0.20 / (9.4% - 1.55%)
CN¥2.58
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥8.18 + CN¥2.58
CN¥10.77
SEHK:1398 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1398)
1.093
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥10.77 x 1.093
HK$11.78
Value per share (HKD) From above. HK$11.78
Current discount Discount to share price of HK$5.15
= -1 x (HK$5.15 - HK$11.78) / HK$11.78
56.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Industrial and Commercial Bank of China is available for.
Intrinsic value
>50%
Share price is HK$5.15 vs Future cash flow value of HK$11.78
Current Discount Checks
For Industrial and Commercial Bank of China to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Industrial and Commercial Bank of China's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Industrial and Commercial Bank of China's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Industrial and Commercial Bank of China's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Industrial and Commercial Bank of China's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1398 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CNY CN¥0.86
SEHK:1398 Share Price ** SEHK (2020-04-03) in HKD HK$5.15
SEHK:1398 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.915 CN¥4.71
Hong Kong Banks Industry PE Ratio Median Figure of 32 Publicly-Listed Banks Companies 5.2x
Hong Kong Market PE Ratio Median Figure of 1,475 Publicly-Listed Companies 9.06x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Industrial and Commercial Bank of China.

SEHK:1398 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1398 Share Price ÷ EPS (both in CNY)

= 4.71 ÷ 0.86

5.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Industrial and Commercial Bank of China is overvalued based on earnings compared to the HK Banks industry average.
  • Industrial and Commercial Bank of China is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Industrial and Commercial Bank of China's expected growth come at a high price?
Raw Data
SEHK:1398 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.48x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
3.7%per year
Hong Kong Banks Industry PEG Ratio Median Figure of 14 Publicly-Listed Banks Companies 0.89x
Hong Kong Market PEG Ratio Median Figure of 487 Publicly-Listed Companies 0.64x

*Line of best fit is calculated by linear regression .

SEHK:1398 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.48x ÷ 3.7%

1.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Industrial and Commercial Bank of China is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Industrial and Commercial Bank of China's assets?
Raw Data
SEHK:1398 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CNY CN¥7.37
SEHK:1398 Share Price * SEHK (2020-04-03) in HKD HK$5.15
SEHK:1398 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.915 CN¥4.71
Hong Kong Banks Industry PB Ratio Median Figure of 33 Publicly-Listed Banks Companies 0.47x
Hong Kong Market PB Ratio Median Figure of 2,250 Publicly-Listed Companies 0.71x
SEHK:1398 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1398 Share Price ÷ Book Value per Share (both in CNY)

= 4.71 ÷ 7.37

0.64x

* Primary Listing of Industrial and Commercial Bank of China.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Industrial and Commercial Bank of China is overvalued based on assets compared to the HK Banks industry average.
X
Value checks
We assess Industrial and Commercial Bank of China's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Industrial and Commercial Bank of China has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1398 Future Performance

 How is Industrial and Commercial Bank of China expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Industrial and Commercial Bank of China expected to grow at an attractive rate?
  • Industrial and Commercial Bank of China's earnings growth is expected to exceed the low risk savings rate of 1.6%.
Growth vs Market Checks
  • Industrial and Commercial Bank of China's earnings growth is positive but not above the Hong Kong market average.
  • Industrial and Commercial Bank of China's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1398 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1398 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 3.7%
SEHK:1398 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 13.1%
Hong Kong Banks Industry Earnings Growth Rate Market Cap Weighted Average 4.6%
Hong Kong Banks Industry Revenue Growth Rate Market Cap Weighted Average 13.3%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 9.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1398 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1398 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 900,357 348,103 9
2021-12-31 861,273 333,964 20
2020-12-31 821,472 318,139 19
2020-04-04
SEHK:1398 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-12-31 597,045 -848,883 312,224
2019-09-30 639,264 1,039,319 305,255
2019-06-30 632,462 1,542,399 300,659
2019-03-31 617,900 1,173,181 296,373
2018-12-31 615,283 724,133 293,170
2018-09-30 605,437 945,104 293,240
2018-06-30 602,745 1,918,903 289,059
2018-03-31 604,826 826,489 284,628
2017-12-31 600,639 770,864 281,612
2017-09-30 552,335 -1,095,763 279,006
2017-06-30 545,604 -1,442,363 276,577
2017-03-31 545,827 -1,383,191 274,821

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Industrial and Commercial Bank of China's earnings are expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).
  • Industrial and Commercial Bank of China's revenue is expected to grow by 13.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1398 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Industrial and Commercial Bank of China Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1398 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 0.97 1.03 0.72 9.00
2021-12-31 0.93 1.02 0.70 21.00
2020-12-31 0.89 0.91 0.69 20.00
2020-04-04
SEHK:1398 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-12-31 0.86
2019-09-30 0.86
2019-06-30 0.84
2019-03-31 0.83
2018-12-31 0.82
2018-09-30 0.82
2018-06-30 0.81
2018-03-31 0.80
2017-12-31 0.79
2017-09-30 0.78
2017-06-30 0.77
2017-03-31 0.77

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Industrial and Commercial Bank of China is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Industrial and Commercial Bank of China's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Industrial and Commercial Bank of China has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1398 Past Performance

  How has Industrial and Commercial Bank of China performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Industrial and Commercial Bank of China's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Industrial and Commercial Bank of China's year on year earnings growth rate has been positive over the past 5 years.
  • Industrial and Commercial Bank of China's 1-year earnings growth exceeds its 5-year average (6.5% vs 2.3%)
  • Industrial and Commercial Bank of China's earnings growth has exceeded the HK Banks industry average in the past year (6.5% vs 6.3%).
Earnings and Revenue History
Industrial and Commercial Bank of China's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Industrial and Commercial Bank of China Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1398 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 597,045.00 312,224.00
2019-09-30 639,264.00 305,255.00 185,041.00
2019-06-30 632,462.00 300,659.00 185,041.00
2019-03-31 617,900.00 296,373.00 185,041.00
2018-12-31 615,283.00 293,170.00 185,041.00
2018-09-30 605,437.00 293,240.00 177,723.00
2018-06-30 602,745.00 289,059.00 177,723.00
2018-03-31 604,826.00 284,628.00 177,723.00
2017-12-31 600,639.00 281,612.00 177,723.00
2017-09-30 552,335.00 279,006.00 162,156.00
2017-06-30 545,604.00 276,577.00 162,156.00
2017-03-31 545,827.00 274,821.00 162,156.00
2016-12-31 554,956.00 273,799.00 162,156.00
2016-09-30 560,443.00 275,831.00 163,506.00
2016-06-30 572,558.00 275,996.00 163,506.00
2016-03-31 583,117.00 275,240.00 163,506.00
2015-12-31 582,253.00 274,800.00 163,506.00
2015-09-30 583,690.00 277,108.00 164,629.00
2015-06-30 580,345.00 276,732.00 164,629.00
2015-03-31 580,239.00 276,833.00 164,629.00
2014-12-31 578,425.00 275,811.00 164,629.00
2014-09-30 574,101.00 277,580.00 154,270.00
2014-06-30 564,312.00 272,402.00 154,270.00
2014-03-31 551,878.00 267,208.00 154,270.00
2013-12-31 540,996.00 262,649.00 154,270.00
2013-09-30 531,777.00 258,463.00 119,727.00
2013-06-30 522,321.00 253,719.00 119,727.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Industrial and Commercial Bank of China has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Industrial and Commercial Bank of China used its assets more efficiently than the HK Banks industry average last year based on Return on Assets.
  • Unable to establish if Industrial and Commercial Bank of China improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Industrial and Commercial Bank of China's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Industrial and Commercial Bank of China has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1398 Health

 How is Industrial and Commercial Bank of China's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Industrial and Commercial Bank of China's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Industrial and Commercial Bank of China Company Filings, last reported 3 months ago.

SEHK:1398 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 2,692,003.00 1,092,345.00 5,193,491.00
2019-09-30 2,670,628.00 1,161,344.00 6,133,158.00
2019-06-30 2,428,895.00 1,692,271.00 3,090,625.00
2019-03-31 2,428,953.00 1,062,764.00 5,645,357.00
2018-12-31 2,344,883.00 1,696,491.00 2,148,962.00
2018-09-30 2,280,861.00 1,266,902.00 5,095,692.00
2018-06-30 2,192,201.00 1,725,639.00 1,677,988.00
2018-03-31 2,184,905.00 1,336,581.00 2,387,521.00
2017-12-31 2,141,056.00 2,153,870.00 2,263,163.00
2017-09-30 2,101,142.00 1,179,683.00 2,595,095.00
2017-06-30 2,030,634.00 1,657,525.00 2,086,108.00
2017-03-31 2,044,971.00 1,215,851.00 1,979,317.00
2016-12-31 1,981,163.00 1,553,670.00 1,850,815.00
2016-09-30 1,953,995.00 859,711.00 2,222,701.00
2016-06-30 1,867,777.00 1,276,235.00 1,827,890.00
2016-03-31 1,874,079.00 737,669.00 2,409,193.00
2015-12-31 1,800,519.00 1,211,990.00 1,982,426.00
2015-09-30 1,690,652.00 664,221.00 2,002,836.00
2015-06-30 1,613,637.00 1,129,224.00 1,709,015.00
2015-03-31 1,621,260.00 783,643.00 2,249,841.00
2014-12-31 1,537,304.00 1,126,468.00 1,500,184.00
2014-09-30 1,432,375.00 618,625.00 1,332,080.00
2014-06-30 1,359,503.00 954,403.00 1,593,886.00
2014-03-31 1,362,920.00 508,456.00 1,735,317.00
2013-12-31 1,278,463.00 976,733.00 1,212,920.00
2013-09-30 1,235,389.00 598,676.00 1,472,806.00
2013-06-30 1,175,093.00 979,725.00 1,360,668.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Industrial and Commercial Bank of China has an acceptable proportion of non-loan assets held.
  • Industrial and Commercial Bank of China's liabilities are made up of primarily low risk sources of funding.
  • Loans at Industrial and Commercial Bank of China are broadly funded by customer deposits.
  • Industrial and Commercial Bank of China's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Industrial and Commercial Bank of China has a sufficient allowance for bad loans.
  • Industrial and Commercial Bank of China has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Industrial and Commercial Bank of China's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Industrial and Commercial Bank of China has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1398 Dividends

 What is Industrial and Commercial Bank of China's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.58%
Current annual income from Industrial and Commercial Bank of China dividends. Estimated to be 5.69% next year.
If you bought HK$2,000 of Industrial and Commercial Bank of China shares you are expected to receive HK$112 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Industrial and Commercial Bank of China's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.6%).
  • Industrial and Commercial Bank of China's dividend is below the markets top 25% of dividend payers in Hong Kong (7.27%).
Upcoming dividend payment

Purchase Industrial and Commercial Bank of China before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1398 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
Hong Kong Banks Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 6.1%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 951 Stocks 4.3%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.3%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.6%
Hong Kong Top 25% Dividend Yield 75th Percentile 7.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1398 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.00 1.00
2022-12-31 0.26 8.00
2021-12-31 0.28 20.00
2020-12-31 0.27 19.00
2020-04-04
SEHK:1398 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2020-03-27 0.263 5.512
2019-03-28 0.251 5.105
2018-05-09 0.241 4.843
2017-05-12 0.234 4.604
2016-06-30 0.233 5.559
2015-03-26 0.255 6.444
2014-04-22 0.262 6.313
2014-03-27 0.262 6.830
2013-03-27 0.239 5.927
2012-10-30 0.203 4.621
2012-04-16 0.203 5.473
2011-03-30 0.184 4.298
2010-04-01 0.170 3.335
2009-04-30 0.165 3.304

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Industrial and Commercial Bank of China's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.8x coverage).
X
Income/ dividend checks
We assess Industrial and Commercial Bank of China's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Industrial and Commercial Bank of China afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Industrial and Commercial Bank of China has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1398 Management

 What is the CEO of Industrial and Commercial Bank of China's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Shu Gu
COMPENSATION CN¥672,900
AGE 52
TENURE AS CEO 3.5 years
CEO Bio

Mr. Shu Gu has been the President and Executive Director of Industrial and Commercial Bank of China Limited since October 2016 and December 29, 2016 respectively. He serves as President of Industrial and Commercial Bank of China (Europe) SA. He has been Vice Chairman of Industrial and Commercial Bank of China Limited since December 29, 2016. He joined ICBC in 1998, where he served as Deputy General Manager of Accounting and Settlement Department, Deputy General Manager of the Planning and Finance Department, and General Manager of Finance and Accounting Department. Since July 2008, he had served as Board Secretary and General Manager of Corporate Strategy and Investor Relations Department of the Bank, Head of Shandong Branch and Senior Executive Vice President of the Bank. He served concurrently as Vice Chairman of Standard Bank Group Limited, Chairman of ICBC (London) PLC and Chairman of Industrial and Commercial Bank of China (Argentina) S.A. He is a senior accountant. He was Director of Standard Bank of South Africa Ltd. Until 2017. He was Board Secretary and Company Secretary of Industrial and Commercial Bank of China (Macau) Ltd. and PT Bank ICBC Indonesia. He graduated from Shanghai Jiao Tong University with a Bachelor’s degree in Engineering in 1990 and received a Master’s degree in Economics from Dongbei University of Finance and Economics in 1995 and a Doctorate degree in Management from Shanghai University of Finance and Economics in 1998.

CEO Compensation
  • Shu's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Shu's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Industrial and Commercial Bank of China management team in years:

3.5
Average Tenure
55
Average Age
  • The tenure for the Industrial and Commercial Bank of China management team is about average.
Management Team

Shu Gu

TITLE
Vice Chairman & President
COMPENSATION
CN¥673K
AGE
52
TENURE
3.5 yrs

Bairong Wang

TITLE
Chief Risk Officer
COMPENSATION
CN¥1M
AGE
56
TENURE
3.8 yrs

Xueqing Guan

TITLE
Board Secretary
COMPENSATION
CN¥1M
AGE
55
TENURE
3.8 yrs

Siqing Chen

TITLE
Chairman of the Board
AGE
59

Wenwu Zhang

TITLE
General Manager of Finance & Accounting Department
COMPENSATION
CN¥50K
AGE
57

Bresson Xu

TITLE
Corporate Strategy & Investor Relations

Li Huang

TITLE
Chief Responsible Officer of Internal Audit Bureau & Employee Supervisor
AGE
55

Lin Liao

TITLE
Senior Executive Vice President
AGE
53
TENURE
0.4 yrs

Wang Jingwu

TITLE
Senior Executive Vice President
TENURE
0.1 yrs
Board of Directors Tenure

Average tenure and age of the Industrial and Commercial Bank of China board of directors in years:

3.3
Average Tenure
57.5
Average Age
  • The tenure for the Industrial and Commercial Bank of China board of directors is about average.
Board of Directors

Shu Gu

TITLE
Vice Chairman & President
COMPENSATION
CN¥673K
AGE
52
TENURE
3.3 yrs

Siqing Chen

TITLE
Chairman of the Board
AGE
59
TENURE
0.9 yrs

Li Huang

TITLE
Chief Responsible Officer of Internal Audit Bureau & Employee Supervisor
AGE
55
TENURE
3.8 yrs

Anthony Francis Neoh

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥445K
AGE
73
TENURE
5 yrs

Si Shen

TITLE
Independent Non Executive Director
COMPENSATION
CN¥413K
AGE
65
TENURE
3.1 yrs

Nout Elisabeth Maria Wellink

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥25K
AGE
76
TENURE
1.3 yrs

Guozhong Yang

TITLE
Chairman of the Board of Supervisor
AGE
56

Fuqing Zheng

TITLE
Non-Executive Director
AGE
56
TENURE
5.2 yrs

Silas Yang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥440K
AGE
64
TENURE
4 yrs

Yingchun Mei

TITLE
Non-Executive Director
AGE
48
TENURE
2.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
19. Jun 19 Buy Ping An Insurance (Group) Company of China, Ltd. Company 17. Jun 19 17. Jun 19 82,409,000 HK$5.80 HK$478,260,839
18. Jun 19 Buy Ping An Insurance (Group) Company of China, Ltd. Company 14. Jun 19 14. Jun 19 72,636,000 HK$5.74 HK$416,567,577
13. Jun 19 Buy Ping An Insurance (Group) Company of China, Ltd. Company 12. Jun 19 12. Jun 19 92,111,000 HK$5.74 HK$528,486,507
03. Jun 19 Buy Ping An Insurance (Group) Company of China, Ltd. Company 30. May 19 30. May 19 96,243,000 HK$5.61 HK$539,720,909
31. May 19 Buy Ping An Insurance (Group) Company of China, Ltd. Company 29. May 19 29. May 19 111,382,000 HK$5.54 HK$617,234,356
29. May 19 Buy Ping An Insurance (Group) Company of China, Ltd. Company 28. May 19 28. May 19 93,166,000 HK$5.59 HK$520,937,950
20. May 19 Buy Ping An Insurance (Group) Company of China, Ltd. Company 16. May 19 16. May 19 117,000,000 HK$5.55 HK$649,209,389
15. May 19 Buy Ping An Insurance (Group) Company of China, Ltd. Company 14. May 19 14. May 19 108,909,000 HK$5.44 HK$592,617,467
X
Management checks
We assess Industrial and Commercial Bank of China's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Industrial and Commercial Bank of China has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1398 News

Simply Wall St News

When Should You Buy Industrial and Commercial Bank of China Limited (HKG:1398)?

Let’s take a look at Industrial and Commercial Bank of China’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … I find that Industrial and Commercial Bank of China’s ratio of 5.36x is trading slightly below its industry peers’ ratio of 5.4x, which means if you buy Industrial and Commercial Bank of China today, you’d be paying a fair price for it. … Since Industrial and Commercial Bank of China’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy.

Simply Wall St -

Does Industrial and Commercial Bank of China Limited's (HKG:1398) CEO Pay Compare Well With Peers?

At the time of writing our data says that Industrial and Commercial Bank of China Limited has a market cap of HK$2.1t, and is paying total annual CEO compensation of CN¥673k. … Industrial and Commercial Bank of China Limited has served shareholders reasonably well, with a total return of 25% over three years. … Industrial and Commercial Bank of China Limited is currently paying its CEO below what is normal for large companies.

Simply Wall St -

Is Industrial and Commercial Bank of China Limited (HKG:1398) An Attractive Dividend Stock?

Dividend paying stocks like Industrial and Commercial Bank of China Limited (HKG:1398) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … In this case, Industrial and Commercial Bank of China likely looks attractive to investors, given its 5.2% dividend yield and a payment history of over ten years. … Overall we think Industrial and Commercial Bank of China is an interesting dividend stock, although it could be better.

Simply Wall St -

Does Industrial and Commercial Bank of China (HKG:1398) Deserve A Spot On Your Watchlist?

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Industrial and Commercial Bank of China (HKG:1398). … Industrial and Commercial Bank of China maintained stable EBIT margins over the last year, all while growing revenue 2.2% to CN¥618b. … For companies with market capitalizations over CN¥55b, like Industrial and Commercial Bank of China, the median CEO pay is around CN¥4.1m.

Simply Wall St -

If You Had Bought Industrial and Commercial Bank of China (HKG:1398) Stock Three Years Ago, You Could Pocket A 30% Gain Today

For example, the Industrial and Commercial Bank of China Limited (HKG:1398) share price is up 30% in the last three years, clearly besting than the market return of around 14% (not including dividends). … Industrial and Commercial Bank of China was able to grow its EPS at 2.5% per year over three years, sending the share price higher. … In the case of Industrial and Commercial Bank of China, it has a TSR of 54% for the last 3 years.

Simply Wall St -

Industrial and Commercial Bank of China Limited (HKG:1398): What Does The Future Look Like?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … Based on Industrial and Commercial Bank of China Limited's (HKG:1398) earnings update on 31 March 2019,

Simply Wall St -

Real Risks You Need To Know Before Investing In Industrial and Commercial Bank of China Limited (HKG:1398)

Post-GFC recovery has strengthened economic growth and credit quality, benefiting large banks such as Industrial and Commercial Bank of China Limited (HKG:1398), with a market capitalisation of HK$2.4t. … Economic growth fuels demand for loans and affects a borrower’s ability to repay which directly impacts the level of risk Industrial and Commercial Bank of China takes on. … Since the level of risky assets held by a bank impacts its cash flow and therefore the attractiveness of its stock as an investment, I will take you through three metrics that are insightful proxies for risk.

Simply Wall St -

Is Industrial and Commercial Bank of China Limited's (HKG:1398) CEO Paid At A Competitive Rate?

Shu Gu is the CEO of Industrial and Commercial Bank of China Limited (HKG:1398). … View our latest analysis for Industrial and Commercial Bank of China? … At the time of writing our data says that Industrial and Commercial Bank of China Limited has a market cap of HK$2.2t, and is paying total annual CEO compensation of CN¥634k.

Simply Wall St -

Should Industrial and Commercial Bank of China Limited (HKG:1398) Be Part Of Your Dividend Portfolio?

Industrial and Commercial Bank of China Limited (HKG:1398) has pleased shareholders over the past 10 years, by paying out dividends. … Does Industrial and Commercial Bank of China tick all the boxes of a great dividend stock? … Check out our latest analysis for Industrial and Commercial Bank of China

Simply Wall St -

Introducing Industrial and Commercial Bank of China, A Stock That Climbed 47% In The Last Three Years

For example, Industrial and Commercial Bank of China Limited (HKG:1398) shareholders have seen the share price rise 47% over three years, well in excess of the market return (33%, not including dividends). … Industrial and Commercial Bank of China was able to grow its EPS at 1.9% per year over three years, sending the share price higher. … It might be well worthwhile taking a look at our free report on Industrial and Commercial Bank of China's earnings, revenue and cash flow.

Simply Wall St -

1398 Company Info

Description

Industrial and Commercial Bank of China Limited provides various banking products and services primarily in China and internationally. It operates through Corporate Banking, Personal Banking, and Treasury Operations segments. The Corporate Banking segment offers financial products and services to corporations, government agencies, and financial institutions. This segment’s products and services include corporate loans, trade financing, deposit-taking activities, corporate wealth management services, custody activities, various corporate intermediary services, etc. The Personal Banking segment provides personal loans and cards, deposits, personal wealth management, and personal intermediary services to individual customers. The Treasury Operations segment is involved in the money market transactions, investment securities, and foreign exchange transactions, as well as holding of derivative positions. The company also offers e-banking services, including Internet, telephone, and mobile banking services; and fund and asset management, trust, financial leasing, broker dealer, insurance, and other financial services. It operates approximately 16,394 domestic institutions and 426 overseas institutions. The company has a strategic alliance with Pintec Technology Holdings Limited to jointly leverage financial technologies and to enhance the efficiency of lending services for small and micro-sized enterprises. Industrial and Commercial Bank of China Limited was founded in 1984 and is headquartered in Beijing, the People's Republic of China.

Details
Name: Industrial and Commercial Bank of China Limited
1398
Exchange: SEHK
Founded: 1984
HK$1,962,234,611,592
356,406,257,039
Website: http://www.icbc-ltd.com
Address: Industrial and Commercial Bank of China Limited
No. 55 Fuxingmennei Avenue,
Xicheng District,
Beijing,
100140,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1398 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 27. Oct 2006
OTCPK IDCB.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 27. Oct 2006
DB ICK Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 27. Oct 2006
SHSC 1398 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 27. Oct 2006
SZSC 1398 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 27. Oct 2006
WBAG ICK Foreign Shares-Foreign Listed Wiener Boerse AG AT EUR 27. Oct 2006
OTCPK IDCB.Y UNSPONSORED ADR Pink Sheets LLC US USD 23. Oct 2008
SHSE 601398 Domestic Shares Shanghai Stock Exchange CN CNY 27. Oct 2006
XSSC 601398 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 27. Oct 2006
Number of employees
Current staff
Staff numbers
439,150
Industrial and Commercial Bank of China employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 12:49
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/04
Last earnings filing: 2020/03/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.