Some of China’s largest banks are set to post their first drop in first-half profits since the global financial crisis, hit by a surge in bad debt and higher loan-loss provisions due to the coronavirus pandemic, analysts and official data indicate, reported Reuters.The big five state banks including Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), and Bank of China (BoC) kick off their earnings season on Aug. 28.
“Banks had it easy in the past, but now many signs indicate they’re under great pressure,” said Hong Hao, head of research at BoCom International. “The pandemic has hit small businesses hard … the balance sheets won’t be pretty.”
Chinese commercial banks overall posted a 9.4% fall in first half net profit, while the six biggest posted a 12% profit fall from a year ago, according to China Banking and Insurance Regulatory Commission (CBIRC) data.
You must log in to post a comment.