Three Chinese banks report weak profit growth
August 31, 2015 Category Finance, Weekly
Three of China’s top-five lenders reported weak growth in net profit and soaring bad loans in their semi-annual earnings reports amid a downturn in the Chinese economy. The Agriculture Bank of China (ABC), one of the biggest state-owned lenders, said net profit by June was flat at CNY104.3 billion. Net interest income, which is the biggest profit contributor for most Chinese banks, added 4.8% to CNY219.5 billion. Net non-interest income shed 0.4% to CNY47 billion. The bad loan ratio of ABC jumped to 1.83% in June from 1.53% at the end of March as the lender cited poor solvency of manufacturing and retailing companies in the western region. The Bank of Communications (BoCom), China’s fifth-largest lender, said net profit gained 1.5% to CNY37.3 billion. Net interest income jumped 23.5% to CNY19.4 billion. BoCom reported bad loans of CNY50.2 billion by June, up CNY7.1 billion from the end of the first quarter, sending the bad loan ratio to 1.35%, the Shanghai Daily reports.
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