Chinese State Banks' Profits Rise Despite COVID-19 Challenges in Property Sector
Property Sector Impact on Chinese State Banks' Profits
Chinese state banks are showing resilience as profits rise even amid the ongoing COVID-19 challenges faced by the property sector. Key players like Bank of China and China Construction Bank reported higher net earnings, aided by the governmental capital infusion.
NPL Ratios Show Improvement
- Bank of China: 2.6% profit increase, NPL ratio down from 1.27% to 1.25%
- Industrial and Commercial Bank of China: 0.5% profit rise, NPLs fall from 1.36% to 1.34%
- China Construction Bank: 0.88% profit growth, NPLs decrease to 1.34%
The government continues to strengthen its support for state banks, essential players in bolstering the economy amid tough conditions. As reported by Fitch Ratings, these banks' expanding roles in funding are crucial for economic recovery.
Li Yunze from the National Financial Regulatory Administration indicates fresh policies aimed at tackling retail loan risks while mitigating problems stemming from real estate. However, as retail loan demand remains sluggish, risks persist.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.