Agricultural Bank of China (1288.HKG, 601288.SHA) is bracing for more bad weather, setting aside more money for future bad loans amidst the nation’s economic slowdown, Bloomberg reported, citing a Tuesday Hong Kong exchange filing. The bank boosted provisions for potential soured credit by 56% to RMB15.6 billion (US$2.5 billion) in the three months ended 30 June from a year earlier, according to the filing yesterday. The operating environment for Chinese banks is deteriorating amid an economic slowdown; credit expansion in the world’s second-largest economy plunged last month and investment spending unexpectedly slowed, adding risks to growth as a property slump threatens more defaults.
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