World’s largest company warns of ‘complicated’ second half, even as ICBC’s interim profit growth of 4.5 per cent beats estimates
- China’s largest lender by assets said the global economic environment is expected to ‘tighten on the whole’ in the second half
- ICBC said it still expects China’s economy will continue to ‘operate robustly’
Industrial and Commercial Bank of China (ICBC) warned on Thursday that banks could face a “complicated economic landscape” for the rest of 2019, even as its profit rose 4.5 per cent in the first half despite navigating a “changing economic and financial environment”.
The bank, China’s largest by assets, reported a profit of 167.9 billion yuan (US$23.5 billion) in the first six months of the year, compared with 160.4 billion yuan in the same period a year ago.
“On the one hand, the world economic environment is expected to tighten on the whole. There are more sources of global unrest and risk points, and considerable uncertainties in economic operations,” the bank said in a filing to the Hong Kong stock exchange. “On the other hand, the Chinese economy will continue to operate robustly. A host of macro control policies such as streamlining administration and delegating power, cutting taxes and fees, and targeted easing start to take effect, creating a business environment in favour of the banking sector’s sound and efficient operation.”
The bank’s shares closed unchanged on Thursday at HK$4.89 in Hong Kong and finished the day up 0.37 per cent at 5.42 yuan in Shanghai.