China’s banks were sitting pretty in the first quarter thanks to revenues and a reduction in corporate income tax to 25% from 33%, which came on January 1.
The gains came in spite of government efforts to rein in bank lending.
Bank of China saw its first quarter net profit jump 85% year-on-year to US$3.1 billion. Net interest income was up 19% to US$5.8 billion, while net fee and commission income rose 83% to US$1.3 billion.
Industrial and Commercial Bank of China saw a similar surge in its fee-based business, which was up 86% year-on-year to US$1.73 billion. Net interest income came to US$4.7 billion, up 36%. Overall first-quarter net profit was US$4.7 billion, a gain of 77%.
Bank of Communications’ s profit more than doubled to reach US$1.13 billion, while Agricultural Bank of China (ABC) posted a profit of US$4.9 billion, up 71%. There were also rumors of a management shakeup at the bank.
Banking services also proved to be a boon to Ping An Insurance, helping the firm offset a 34.5% drop in investment income to post a net profit of US$1.01 billion, a year-on-year gain of 23.6%. Ping An’s banking business contributed US$238.92 million in interest income, nearly double the previous year.
China Life Insurance, meanwhile, saw net profit drop by 61% in the first quarter to US$495.2 million, mostly due to stock market losses. The insurer’s investment income was down 9.9% as US$786 million was wiped from its investment portfolio.
The gains came in spite of government efforts to rein in bank lending.
Bank of China saw its first quarter net profit jump 85% year-on-year to US$3.1 billion. Net interest income was up 19% to US$5.8 billion, while net fee and commission income rose 83% to US$1.3 billion.
Industrial and Commercial Bank of China saw a similar surge in its fee-based business, which was up 86% year-on-year to US$1.73 billion. Net interest income came to US$4.7 billion, up 36%. Overall first-quarter net profit was US$4.7 billion, a gain of 77%.
Bank of Communications’ s profit more than doubled to reach US$1.13 billion, while Agricultural Bank of China (ABC) posted a profit of US$4.9 billion, up 71%. There were also rumors of a management shakeup at the bank.
Banking services also proved to be a boon to Ping An Insurance, helping the firm offset a 34.5% drop in investment income to post a net profit of US$1.01 billion, a year-on-year gain of 23.6%. Ping An’s banking business contributed US$238.92 million in interest income, nearly double the previous year.
China Life Insurance, meanwhile, saw net profit drop by 61% in the first quarter to US$495.2 million, mostly due to stock market losses. The insurer’s investment income was down 9.9% as US$786 million was wiped from its investment portfolio.
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