Industrial And Commercial Bank Of China Ltd Class A

601398: XSHG (CHN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥8.50	Btnsw	Tqcvcywk

China SOE Banks Earnings: Large Banks Lag Smaller Banks in NIM Recovery

Iris Tan

Sep 3, 2024

We maintain our fair value estimates for the state-owned enterprise banks in our coverage except for Agricultural Bank of China, which is seeing higher-than-expected net interest margins. We now increase ABC’s NIM assumption by 5 and 2 basis points in 2024 and 2025, respectively, which leads to a rise in fair value estimate to HKD 3.80 from HKD 3.50. Overall, there are no changes to our outlook for the other SOE banks.

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