ICBC's First-Half Net Profit Fell on Higher Credit Costs — Update

By Kosaku Narioka

Industrial & Commercial Bank of China reported a decline in first-half net profit, due in part to higher credit costs.

The Chinese bank said Friday that net profit fell 1.4% to 164.43 billion yuan, equivalent to $23.06 billion, for the first six months of 2025. That narrowly beat the 164.05 billion yuan estimate in a poll of analysts by data provider Visible Alpha.

Net interest income--the difference between interest earned on loans and that paid on deposits--edged down 0.1% from a year earlier to 313.58 billion yuan as loan rates fell in China.

Large Chinese banks such as ICBC have been cutting lending rates in recent years as policymakers take steps to shore up consumer confidence and a flagging property market.

Credit impairment losses increased 2.2% to 104.01 billion yuan. Net gains on financial investments climbed 24% to 18.29 billion yuan, while net fee and commission income fell 0.6% to 67.02 billion yuan.

The lender's nonperforming-loan ratio was 1.33% as of the end of June, little changed from 1.34% at the end of December.

The bank's Hong Kong-listed shares have risen about 11% year to date, driven by hopes that Chinese authorities will take measures to stimulate the economy.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 29, 2025 05:37 ET (09:37 GMT)