For China’s top lenders, third-quarter profits grow and bad loans ease
Beijing — Four of China’s "Big Five" state-owned banks reported higher quarterly profits and slower growth in bad loans, helped by a resilient economy and checks on the shadow banking sector. The improved results from top lenders in the world’s second-largest economy come after successive interest-rate cuts dented their interest margins — a key gauge of profitability — while loan defaults rose sharply among struggling borrowers. The improvement has been aided by a cocktail of policy measures, such as debt-for-equity swaps for struggling state borrowers. Industrial and Commercial Bank of China (ICBC), the country’s top lender by assets, posted a 3.3% rise in third-quarter net profit, compared to flat growth a year-ago. Agricultural Bank of China (AgBank), China Construction Bank (CCB) and Bank of Communications (BoCom) also reported faster quarterly profit growth than a year ago. ICBC, CCB and AgBank also reported declines in their non-performing loan (NPL) ratios, as they dispose of...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.