China’s banking sector saw a sizeable decline in its net profits for 2020 amidst the adverse economic impacts of the COVID-19 pandemic.
The net profits of Chinese commercial banks totalled 2 trillion yuan (approx. USD$308.55 billion) in 2020 for a YoY decline of 1.8%, according to initial calculations by the China Banking and Insurance Regulatory Commission (CBIRC).
Total assets of the Chinese banking sector were 319.7 trillion yuan as of the end of 2020, for YoY increase of 10.1%, while total liabilities were 293.1 trillion yuan, for a YoY rise of 10.2%.
Renminbi loans increased 19.6 trillion yuan in 2020, 2.8 trillion yuan ahead of the figure for the preceding year. The NPL ratio of Chinese banks stood at 1.92% as of the end of 2020, for a decline of 0.06 percentage points compared to the start of the same year.