CBRC: Combined NPL ratio for China's top 5 banks is 1.46%

The combined non-performing loan (NPL) ratio of China’s five largest banks stood at 1.46% at the end of June, Bloomberg reported, citing state media. The total number of US$47.8 billion in bad loans came from Shen Xiaoming, a director at the China Banking Regulatory Commission (CBRC). Shen was referring to the combined NPL rate of  Agricultural Bank of China (601288.SH, 1288.HK), Bank of China (601988.SH, 3988.HK), Bank of Communications (601328.SH, 3328.HK), China Construction Bank (CCB; 601939.SH, 0939.HK) and Industrial and Commercial Bank of China (601398.SH, 1398.HK). The CBRC warned earlier this summer that the total NPL rate for China’s banking industry could be over 20%, prompting concern among some investors that, following last year’s lending binge, the sector may be substantially weaker than had been previously assumed. Separately, CCB announced Sunday that its first-half net profit rose 27% year-on-year to US$10.4 billion.