China’s A-share banks have posted roaring profit growth and improvements to asset quality for 2019.
As of 6 February a total of 21 banks listed on the Shanghai and Shenzhen bourse had issued their preliminary performance results, pointing to combined revenues of 1.3 trillion yuan in 2019, for YoY growth of 14.11%.
Net profits were 400.146 billion yuan, for YoY growth of 10.9%, with 18 out of the 21 A-share lenders reporting net profit growth in excess of 10%.
Only Industrial Bank Co., Shanghai Pudong Development Bank and China CITIC Bank posted YoY net profit growth below 10%.
China Merchants Bank thus far leads net profit growth in 2019, with a 15.28% YoY rise to 92.867 billion yuan. Operating revenues were 269.75 billion yuan, for a YoY rise of 8.53%.
17 of the 21 banks saw YoY declines in their non-performing loan (NPL) ratios for 2019, accounting for over 80% of the total.
Only Shanghai Pudong Development Bank posted an NPL ratio of over 2% in 2019 with a reading of 2.05%, while Bank of Guiyang and Sunong Bank also reported gains in their NPL ratios.