The Agricultural Bank of China and Industrial & Commercial Bank of China both posted profit gains of over 10% in 2021 in a year of recovery after the pandemic outbreak, but are now staring down a growing number of issues from a faltering real estate market and rising Covid outbreaks, reports Bloomberg.
ICBC’s net income grew 10.3% to RMB 348.3 billion, while Agricultural Bank saw its profit rise 11.7% to to RMB 241 billion, the lenders said in filings Wednesday. It was the biggest jump in profit for ICBC, China’s largest lender, since 2012.
China’s $54 trillion banking sector is staging a comeback after policy makers moved to stabilize economic growth and loosened lending restrictions. China’s other mega banks, China Construction Bank, Bank of China, Bank of Communications, have all reported their biggest annual profit growth in nearly a decade.