SHANGHAI- China’s five largest state-owned banks posted their strongest first quarter net profit growth for at least 7 years over the last two days, as soured debts fell.
While many lenders are struggling with loans to cash-strapped developers, China’s largest banks have weathered the storm with their diversified portfolios and lower exposure to risky property clients.
Industrial and Commercial Bank of China Limited 601398.SS, the world’s largest lender, reported a rise of 5.7 percent in first-quarter net profit on Friday, the highest growth in that period since at least 2015.
China Construction Bank Corp (CCB), Agricultural Bank of China Ltd (AgBank) and Bank of Communications Co Ltd (BoCom) followed suit, posting their highest first-quarter net profit growth since at least 2014.
On Saturday, the fourth largest bank by assets, Bank of China Ltd (BoC), posted a rise of 7 percent in first-quarter net profit, for an increase that is the highest growth in that quarterly period since 2015.
All five reported shrinking or steady non-performing loan ratios.
While first-quarter results show a rebound by the big banks from slowing economic growth caused by the original COVID-19 outbreak, two years later they face a resurgence of the more transmissible Omicron variant, which is sweeping China.
The financial hub of Shanghai has been locked down for four weeks, as the capital Beijing began mass testing in some areas. – Reuters
