By Kosaku Narioka


Industrial & Commercial Bank of China reported a rise in third-quarter net profit as gains from trading and financial investments offset a drop in earnings from lending activities.

The Chinese bank said Wednesday that net profit climbed 3.8% from a year earlier to 98.56 billion yuan, equivalent to $13.82 billion, for the three months ended September.

That beat the estimate of 91.15 billion yuan in a poll of analysts by data provider Visible Alpha.

ICBC said net interest income--the difference between interest earned on loans and that paid on deposits--declined 1.1% to 162.78 billion yuan, as loan interest rates have dropped in the country.

Major Chinese banks like ICBC have been cutting lending rates in recent quarters as policymakers take steps to stimulate an economy battling deflation and weak consumer confidence and bolster a flagging property market.

Net fee and commission income dropped 11% to 22.92 billion yuan.

Meanwhile, net trading income rose 47% to 5.56 billion yuan. Net gains on financial investments nearly doubled to 5.06 billion yuan.

Credit impairment losses increased 6.4% from a year earlier to 27.14 billion yuan.

The lender's nonperforming-loan ratio declined to 1.35% at the end of September from 1.36% at the end of 2023.


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


(END) Dow Jones Newswires

10-30-24 0555ET