China’s Big Six Banks See Revenues Rise, Profits Plunge Since Start of 2020

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The third quarter reports of China’s big six state-owned banks point to gains in operating revenues since the start of 2020, alongside a sharp decline in profits and slight bump in non-performing loans (NPL) ratios.

The big six state-owned banks all saw gains in their operating revenues for the first three quarters of 2020, led by China Construction Bank (CCB) with a 5.89% YoY rise to 571.435 billion yuan.

In contrast all six of them posted declines in their net profits, led by Bank of Communications with a 12.36% YoY drop, followed by ICBC with a 9.15% decline, and Bank of China with a 8.69% fall.

China’s big six state-owned banks nonetheless cumulative net profits of 850 billion yuan in the first three quarters of 2020, for average daily earnings of 3.1 billion yuan.

At least several of China’s big six state-owned banks posted gains in NPL ratios in the first three quarters.

Agricultural Bank of China’s (ABC) NPL balance stood at 226.213 billion yuan as of 30 September, for an increase of 39.003 billion yuan compared to the end of last year, while its NPL ratio was 1.52%, for a rise of 0.12 percentage points.

CCB’s NPL balance was 255.528 billion yuan as of the end of 30 September, for an increase of 43.055 billion yuan since the start of the year. Its NPL ratio rose 0.11 percentage points to 1.53%.

Bank of Communications saw its NPL balance rise 18.971 billion yuan to 97.014 billion yuan, while its NPL ratio increased by 0.20 percentage points to 1.67%.

Revenue and Profit Performance of China’s Big Six State-owned Banks for First Three Quarters of 2020

BankRevenues (billion yuan)YoY increaseNet profits attributable to parent company (billion yuan)YoY increase
ICBC665.693 2.90%228.675-9.15%
Bank of China428.9563.03%145.711-8.69%
Bank of Communications185.3945.16%52.712-12.36%
Agricultural Bank of China498.2444.90%165.335-8.49%
China Construction Bank571.4355.89%205.832-8.66%
Postal Savings Bank of China216.2632.80%52.844-2.66%

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