Chinese Bank Majors Post Record Q1 Profit as HSBC Suffers
(1 May 2020 – China) China’s largest listed banks posted strong profit growth in Q1 2020 despite the coronavirus pandemic weighing heavily on economic activity globally noting net interest margins shrank.
The world’s largest commercial lender, Industrial and Commercial Bank of China (ICBC), reported a three percent increase in Q1 2020 net profit compared to last year, while Bank of Communications (BoComm) reported a two percent rise.
Agricultural Bank of China (AgBank) and China Construction Bank (CCB) reported a higher first quarter net profit growth at five percent respectively. Unlike the wider banking sector, ICBC, AgBank and CCB bucked the increasing trend and posted steady non-performing loan (NPL) ratios
Meanwhile, one of Hong Kong’s biggest lenders, HSBC, saw its Q1 2020 profit nearly halve as it set aside a hefty US$3 billion in bad loan provisions, the highest quarterly level in a decade. Profit before tax for the quarter for HSBC fell by 48 percent to US$3.2 billion, while its revenue declined by five percent to US$13.7 billion.
The bank’s results were also hit by the slide in oil prices as well as “a significant charge related to a corporate exposure in Singapore” HSBC CEO Noel Quinn said.
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