UBS: Industrial and Commercial Bank of China's performance in the fourth quarter of last year and throughout the year was stable, rating it as "buy".

Sina Finance reported on March 30th that UBS released a research report stating that Industrial and Commercial Bank of China (ICBC) had a steady performance in the fourth quarter of last year and for the full year, which was roughly in line with industry expectations and the bank's own expectations. The net interest margin in the fourth quarter expanded by 2 basis points, and core profits turned positive. However, retail asset quality still faces challenges, with a significant increase in credit card non-performing loan ratio. The net profit attributable to shareholders increased by 0.7% year-on-year to 368.6 billion yuan last year, slightly higher than market expectations. Management expects that the loan yield will continue to decline moderately this year, but at a slower pace, and observed that the new loan yield in the first two months of this year has stabilized. Assuming there will be no further interest rate cuts, it is expected that the net interest margin will follow an L-shaped trend, and the net interest income for this year is expected to return to positive growth. The bank has set a target price of HK$7.79 for ICBC's H shares and rated it as "Buy".