The online bank backed by fintech giant Ant Group reported another increase in its nonperforming loan (NPL) ratio last year, as China’s weak post-pandemic economic recovery hampered its shift away from consumer lending, reports Caixin. The key indicator of financial institutions’ asset quality rose to 2.28% at the end of last year at Zhejiang E-Commerce Bank, widely known as MYbank, the lender’s annual report shows. That was up from 1.94% at the close of 2022 and 1.53% at the end of 2021.
MYbank’s NPL ratio is higher than its peers such as the Tencent-backed WeBank and Sichuan XWBank. The two banks saw their NPL ratio dip to 1.46% and 1.71% respectively at the end of 2023, according to their annual reports released recently.
MYbank used to offer consumer loans for individuals and business loans for micro and small businesses. However, in recent years it has put the brakes on its consumer loan business, one of its main growth engines, after regulators asked Ant Group to rectify its businesses to reduce risks.