China’s Big Five Banks Post 965bn Yuan in Profits, NPL Ratio Decline in 2017

The 2017 performance results for China’s big five banks point to robust profits and an across the board decline in non-performing loan ratios.

On 29 March Bank of China and Bank of Communications released their 2017 financial reports, rounding out the release of performance results for the previous year by China’s big five banks.

According to the performance results China’s big-five state-owned banks posted total net profits of 965.353 billion yuan (approx. ¬†USD$152.58 billion) in 2017, for an average daily profit of approximately 2.65 billion yuan.

Bank of China achieved net profits of 172.407 billion yuan, for a year-on-year increase of 4.76%, and average daily profits of 472 million yuan.

Bank of Communications achieved net profits of 70.22 billion yuan, for a year-on-year increase of 4.48%, and average daily profits of 197 million yuan.

ICBC achieved net profits of 287.5 billion yuan, for a year-on-year rise of 3%, and average daily profits of 788 million yuan.

China Construction Bank achieved net profits of 252.264 billion yuan, for a year-on-year rise of 4.67%, and average daily profits of 664 million yuan.

Agricultural Bank of China achieved net profits of 192.962 billion yuan, for a year-on-year rise of 4.9%, and average daily profits of 530 million yuan.

Bank of China’s non-performing loan balance as of the end of 2017 was 158.5 billion yuan, for an increase of 12.5 billion yuan compared to the end of 2016.

Its NPL ratio was 1.45%, for a decline of 1 basis point, and an NPL provisioning coverage ratio of 159.18%.

Bank of Communication’s NPL ratio was 1.50%, and its provisioning coverage ratio was 153.1%.

ICBC’s NPL ratio was 1.55%, for a decline of 0.07 percentage points compared to the previous year.

Agricultural Bank of China posted declines in both its NPL balance and ratio. The agricultural lender’s NPL balance was 194.032 billion yuan as of the end of 2017, for a decline of 36.802 billion yuan compared to the end of the previous year, while its NPL ratio was 1.81%, for a decline of 0.56 percentage points.

China Construction Bank’s NPL balance was 192.291 billion yuan, with an NPL ratio of 1.49%, for a decline of 0.03 percentage points compared to the end of 2016.

 

 

 

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