Chinese state-owned banks report steady growth
April 6, 2021 Category China News Round-up, Weekly
Major Chinese state-owned banks reported stable improvement in operating results and growth in 2020. Among the top six banks, Postal Savings Bank of China recorded a net profit of CNY64.3 billion, a year-on-year increase of 5.38%, better than that of its comparable peers. Its assets amounted to CNY11.3 trillion, up 11%, ranking fifth among commercial banks in China, with operating income rising 3.4% to CNY286.5 billion. Boasting a broad physical network covering urban and rural areas, the bank served 622 million personal customers, with assets under management of retail customers amounting to CNY11.2 trillion.
Net profit growth of China Construction Bank (CCB), Agricultural Bank of China (ABC) and Bank of China (BOC) came in at 1.62%, 1.60% and 1.59%, respectively, while Industrial and Commercial Bank of China (ICBC) and Bank of Communications (BoCom) posted relatively slower growth of 1.4% and 1.28%, respectively. In 2020, the interest spread of the banking sector narrowed, and the income from interest margins declined, creating pressure on profitability. CCB noted that the net interest margin, the difference between the lending and deposit rates of banks, was down by 13 basis points from 2019 to 2.19. ICBC, the country’s largest lender, said it saw an increase of CNY2.48 trillion in domestic yuan deposits, including interbank deposits, hitting an all-time high. The ratio of non-performing loans (NPLs) was stable, with the Postal Savings Bank reporting a 0.88% bad loan ratio, the lowest among the six largest lenders, and BoCom with 1.67% having the highest ratio.
In the past year, rapid development of financial technology has driven digital transformation of the banking sector and banks all reported their efforts in that regard. The Postal Savings Bank said it built a big data platform, cloud computing platform, blockchain service and “PSBC Brain” artificial intelligence platform, the Shanghai Daily reports.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world