Citi Research rated ICBC as a Buy due to a 9.2% year-on-year increase in pre-provision operating profit for Q1 2026, driven by improved net interest margin, strong trading gains, solid fee income, and a better cost-to-income ratio. Despite a slight increase in credit costs affecting net profit, the overall results are expected to be positively received by the market. Additionally, a forecasted capital injection of nearly RMB 100 billion is anticipated, although it may lead to a 3-4% dilution in earnings per share. The current valuation remains attractive.
