ICBC (Asia) stock is listed on both the Shanghai Stock Exchange (601398.SS) and the Hong Kong Stock Exchange (1398.HK). Industrial and Commercial Bank of China (ICBC) is a majority Chinese state-owned banking and financial services company, and one of the prominent companies in the Hang Seng Index.
ICBC Chart Today (1398.HK)
According to S&P Global in April 2024, ICBC is the world’s largest bank by total assets, headquartered in Beijing, China. Founded in 1984, ICBC offers a broad range of financial services across retail banking, corporate banking, investment banking, and asset management.
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Banking Industry Comparison
ICBC’s plays a critical role in China’s financial system and operates across Asia-Pacific, Europe, Africa, the Middle East, and the Americas, serving over 600 million customers . It's global presence and position in digital banking make it a key player in the financial services industry.
ICBC EPS and Revenue Breakdown 2020-2023
| Year | EPS | Annual Revenue |
|---|---|---|
| 2020 | $0.13 | $128.20 billion |
| 2021 | $0.15 | $145.30 billion |
| 2022 | $0.14 | $131.51 billion |
| 2023 | $0.14 (TTM) | $118.32 billion |
ICBC Price & Dividend Yield
ICBC’s shares declined significantly between 2018 and 2022. However, the last couple of years have seen the stock grind higher. As of October 25, 2024, it is trading at CNY 6.12, after rising over 28% for the year-to-date and 29% in the last 12 months. Most recently, economic concerns in China have resulted in a pullback after it climbed above the CNY 6.60 mark in early October.
ICBC is known for dividend payments, making it attractive to income-focused investors.
Dividend Yield: 7.21%
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ICBC Share Price Forecast
Analysts remain mostly bullish on ICBC. Out of 15 analysts, nine rate the stock as Buy, five as Hold, and one as Sell.
A View From The Bulls: As China's largest bank and a global financial powerhouse, ICBC benefits from the country's economic growth and increasing financial needs. As a result, a strong Chinese economy should boost the stock. The bank's extensive network, strong brand reputation, and dominant market position enable it to capture a significant share of the Chinese banking market.
A View From The Bears: In April 20204, Fitch Ratings cut its outlook for six Chinese state-owned banks, including ICBC, stating it sees “reduced ability to provide the same level of extraordinary support to these banks” from the Chinese government. While Fitch said at the time that it believes “the state’s propensity to support the banks remains intact,” it added that “the large size of the banking sector constrains the government’s ability to support the banking sector.” Meanwhile, investors may be concerned with the economic climate in China, which could impact ICBC's stock.
Average Analyst Consensus 12-Month Price Target: CNY 6.31
Our View: ICBC remains an attractive option for income-oriented investors thanks to its dividend payments and dominant position in the Chinese banking sector. The bank’s diversified revenue streams, including retail and corporate lending, international operations, and trade finance, provide a solid foundation.
The stock faces several headwinds, including slowing economic growth, property market uncertainties, and regulatory changes. We recently saw the Chinese government introduce aggressive stimulus to try and boost the economy. Investors should also monitor geopolitical risks and trade relations, as these factors could impact China’s broader economic outlook and, in turn, ICBC’s financial performance.
Who Should Buy ICBC Shares?
ICBC shares should be considered by investors seeking income through dividends and exposure to China’s economy.
While there are some concerns, Its scale and government backing offer some key strengths. However, we still feel it is better for investors with a medium risk tolerance.
However, the stock’s performance is closely tied to macroeconomic trends and government policy shifts. As such, ICBC is better suited for long-term investors comfortable with moderate volatility.
Investors focused on growth may prefer banks with higher exposure to international markets or those engaged more actively in fintech innovations.
Overall, ICBC offers a mix of profitability and innovation, making it a potential stock for those comfortable with potential risks and volatility but also looking for consistent returns in the evolving landscape of China’s financial sector.
