China's Big Five lenders see margins shrink in the first quarter By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 29 2024
0mins
Source: Investing.com
- Margins at China's Big Five Lenders: Margins at major Chinese banks decreased in the first quarter due to pressure to support property developers and weak loan demand.
- Net Interest Margin (NIM) Changes: Net interest margins of banks like Agricultural Bank of China, Industrial and Commercial Bank of China, Bank of China, China Construction Bank, and Bank of Communications narrowed during the period.
- Profit Changes: ICBC, BoC, and CCB saw over 2% drops in net profit compared to the same period last year, while AgBank had a 1.63% decrease. BoCom was an exception with a 1.44% increase in net profit.
- Non-Performing Loan Ratios: The five major lenders maintained flat or slightly improved non-performing loan ratios by the end of March.
- Outlook for Smaller Banks: S&P highlighted concerns for smaller banks, especially those in city and rural areas, due to challenges like the prolonged property downcycle and local economic conditions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
