By Kosaku Narioka

Industrial & Commercial Bank of China is scheduled to report fourth-quarter results on Friday. Here's what you need to know:

NET PROFIT FORECAST: ICBC is expected to post a 7.3% drop in net profit to 88.40 billion yuan, equivalent to $12.16 billion, for the three months ended Dec. 31, according to a poll of analysts by Visible Alpha. That would compare with net profit of 95.32 billion yuan in the year-earlier period.

ICBC's Hong Kong-listed stock has risen about 6.3% so far this year through Thursday. That followed a 36% gain in 2024 as fears about the country's property sector eased and hopes for policy support for the domestic economy grew.

WHAT TO WATCH:

--Third-quarter net interest income--the difference between interest earned on loans and that paid on deposits--fell 1.1% from a year earlier to 162.78 billion yuan, as loan interest rates dropped in the country. Investors will be closely watching any further deterioration in the bank's primary source of earnings.

--Third-quarter credit impairment losses rose 6.4% to 27.14 billion yuan. Investors will be focusing on the bank's credit costs as economic uncertainty continues in the world's second-biggest economy.

--The lender's nonperforming-loan ratio declined to 1.35% at the end of September from 1.36% at the end of 2023. Investors will be paying attention to changes in the quality of assets.

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

(END) Dow Jones Newswires

March 27, 2025 04:47 ET (08:47 GMT)

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