Five of China’s largest state-owned banks reported quarterly profit growth of between 6% and 11%, supported by stabilising net interest margins (NIM) and steadier asset quality, even as a slowing economy continued to weigh.
Each of the five lenders posted its fastest quarterly profit growth since 2021 or 2022, bucking the broader economic headwinds and building on their resilient performance in the first half of the year.
BANK-BY-BANK RESULTS
Industrial and Commercial Bank of China, the world’s largest lender by assets, reported on Friday that third-quarter net profit rose 10% year-on-year.
Agricultural Bank of China, China Construction Bank and Bank of Communications reported similar net profit growth rates of 10.8%, 9.8% and 10.1%, respectively.
Bank of China, with the greatest overseas exposure among the big five, reported a comparatively slower 6.4% growth amid trade tensions and foreign exchange swings.
ECONOMY ‘MAINTAINS OVERALL STABILITY’
The results suggest the big lenders are recovering from years of squeezed profitability amid a protracted property crisis, although weak credit demand and a slowing economy continue
Profit growth was driven partly by the repricing of higher-cost deposits that began at the start of the year. That benefit is fading in the second half, but recent monetary easing and mortgage interest subsidies help lower funding costs and support margins, analysts said.
Source: USNEWS