China’s big banks are poised to announce rebounding earnings figures next week, with the strengthening economy and Beijing’s deleveraging drive helping to bring an end to two years of stagnation.
The Big 5 banks, which control over one-third of China’s $40 trillion banking industry, are expected to report combined net income of RMB 952 billion ($150 billion) for 2017, up 2.9% on the previous year, according to estimates made by Bloomberg. With global interest rates rising, this growth could pick up to 8.1% for 2018.
It’s anticipated that the Big 5 will fare better than small and medium-sized banks, who have had to borrow from their larger competitors amid the crackdown debt, boosting margins.
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