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Business· Markets

China's big banks report net profit growth despite COVID-19, totalled USD 175 bln

CKN
minutes 2021/04/02 04:19:26
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Apr 02, 2021 (China Knowledge) - Based on last year's financial results China's six major state-owned banks reported higher net profits in 2020 despite the impact of the COVID-19 epidemic and volatile market. In total these 6 banks raked in nearly RMB 1.14 trln in net profits attributable to shareholders on last year’s performance, rose 1.93% YoY.

Postal Savings Bank of China registered the highest profit growth of 5.36%, followed by Bank of China (BOC) and Agricultural Bank of China (ABC), which reported increases of 2.92% and 1.8% in net profits, respectively. The asset quality of all six banks remained stable while the non-performing loan ratio picked up compared with the beginning of 2020 due to the impact of the COVID-19 epidemic.

The six lenders also reported narrowing net interest margins, which is a gauge measuring banks' profitability, amid the downward trend of loan prime rates and financial institutions' efforts to concede their profits to the real economy.

Wang Jiang, head of the China Construction Bank (CCB), forecasted that despite difficulties in managing interest margins, the bank's net interest margins will stay generally stable this year without large fluctuations.

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