China: 4 major banks, profit decline for the first time in 10 years: Loan expansion despite bad debt
August 31, 2020
The four largest banks in China:
Industrial and Commercial Bank of China,
China Construction Bank,
Agricultural Bank of China,
Bank of China,
The four largest banks in China recorded a sharp decline in profit for the first time in about 10 years in their financial results from January to June (1st half).
Each bank announced the interim financial results on the 30th.
H1 profit down by at least 10%,
The increase in loan loss reserves is 27-97%,
Corona’s damage has slowed down his performance.
The dividend plan for next year is under pressure.
Chinese authorities:
A Chinese banking system of 45 trillion dollars (about 4750 trillion yen).
In the first half, the bad debts of the four major banks increased sharply.
Nevertheless, lending increased by 7-10% under government pressure.
Bloomberg
https://www.bloomberg.co.jp/news/articles/2020-08-30/QFW5RVT0G1KX01
Banks’ earning power weakened by pressure from Chinese government-bad debts are not visible due to grace period
https://www.bloomberg.co.jp/news/articles/2020-09-03/QG1XMYT0G1KY01