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    Industrial and Commercial Bank of China (SEHK:1398) Reports Higher Half Year Earnings, Is It Still Undervalued?

    Simply Wall St·09/01/2026 19:27:55
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    Earnings snapshot for Industrial and Commercial Bank of China stock

    Industrial and Commercial Bank of China (SEHK:1398) has drawn fresh attention after reporting half year 2026 results, with net interest income of CNY 341.2b and net income of CNY 173.7b.

    Basic and diluted earnings per share from continuing operations were CNY 0.47, compared with CNY 0.46 a year earlier. This provides investors with an updated reference point for assessing the bank's valuation and income profile.

    Industrial and Commercial Bank of China shares have gained momentum in recent months, with a 14.36% 90 day share price return and 21.21% year to date share price return. The 1 year total shareholder return of 39.47% and 3 year total shareholder return of 151.58% point to sustained interest around the latest earnings and recent Tier 2 capital notes issuance.

    Compare Industrial and Commercial Bank of China's earnings momentum with other established financial stocks by scanning our hand picked list of solid balance sheet and fundamentals (437 results), which aims to couple resilience with consistent profit generation.

    After a 39.47% 1 year total return and very large 3 year gains, the question for Industrial and Commercial Bank of China is simple. Does the current valuation still leave enough upside to compensate for the risks you are taking?

    Most Popular Narrative: 8% Undervalued

    At a last close of HK$7.69 versus a narrative fair value of HK$8.33, the prevailing view on Industrial and Commercial Bank of China points to a discount that hinges on how its earnings mix evolves over time.

    Diversification into technology finance, green finance (green loans up 16.4%), and inclusive finance (up 17.3%) is creating new long-term growth engines, reducing dependency on traditional lending, and supporting stable or growing earnings despite sectoral headwinds.

    Read the complete narrative.

    Curious what earnings profile is built into that HK$8.33 fair value. The narrative leans heavily on faster revenue growth, firmer margins, and a richer future earnings multiple. The exact mix of those assumptions is where the story gets interesting.

    Result: Fair Value of HK$8.33 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, the story around Industrial and Commercial Bank of China could shift if policy driven lending puts further pressure on margins or if rising fintech competition forces heavier spending on technology.

    Find out about the key risks to this Industrial and Commercial Bank of China narrative.

    Next Steps

    If the tone of this Industrial and Commercial Bank of China update feels optimistic, that is exactly when it pays to test the numbers yourself and decide quickly where you stand based on the 4 key rewards.

    Looking for more investment ideas beyond Industrial and Commercial Bank of China?

    If you only focus on Industrial and Commercial Bank of China, you could miss other opportunities. Use the Simply Wall St screener to spot fresh ideas before they move.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.