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Mixed bag of results for Chinese banks

Mixed bag of results for Chinese banks

(3 November 2017 – China) The three largest banks in China have reported mixed quarterly figures, with Industrial and Commercial Bank of China (ICBC) and Agricultural Bank of China (AgBank) exceeding expectations,  while smaller rival Bank of China (BOC) fell short.

ICBC said net profit rose 3.4 percent on year to 75 billion yuan (A$14.8 billion) for the three months through September, compared to estimates of around 2.5 percent year on year profit rise.

ICBC’s non-performing loan ratio slightly decreased to 1.56 percent at the end of September, from 1.57 percent a quarter ago, reflecting improving assets quality, the lender said in statement to the Hong Kong stock exchange.

The bank said its results continued a stable and heathy development that is both “better than-planned” and “better than the same period a year ago,” reflecting strengthening business vitality, the Beijing-based bank said in a statement. “Asset quality is improving,” it added

AgBank, the country’s third-biggest lender by assets, also reported net profit gains of around five percent to 51.4 billion yuan in the third quarter.

The bank said bad loan ratio fell to 1.97 percent at the end of September from 2.19 percent in the previous quarter.

Bank of China, however, the country’s fourth biggest lender by assets, said profit for the third quarter inched ahead just 0.1 percent to 41.8 billion yuan as impairment losses eroded lending income.

BOC’s non-performing loan ratio slightly rose to 1.41 percent at the end of September, from 1.38 percent.

The industry average non-performing loan ratio has remained flat this year at 1.74 percent, as the end of June, according to the latest available data from the China Banking Regulatory Commission.

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