China's top banks post strong results in 2018

China’s six largest state-owned banks earned a combined net profit of 1.06 trillion yuan (US$160 billion) in 2018, with Industrial and Commercial Bank of China (ICBC) remaining the most profitable lender, according to their annual reports. 

ICBC, the country’s biggest bank, made a net profit of 297.7 billion yuan, ranking first among its peers in terms of profitability. However, its profit growth rate was the lowest, up 4.09 percent year on year.

Postal Savings Bank of China, which was recently grouped with other large state-owned commercial banks by the country's top banking regulator, recorded the fastest net profit growth — 9.8 percent — among the big players. Its earnings reached 52.3 billion yuan.

China Construction Bank and Agricultural Bank of China maintained steady growth in 2018, with net profit increasing by 5.11 percent and 5.08 percent, respectively, to reach 202.78 billion yuan and 180.08 billion yuan.

Bank of Communications (BoCom), a Shanghai-based lender which just completed a management reshuffle, achieved a net profit of 73.63 billion yuan, ranking fifth among the six major banks.

Its profit was up 4.85 percent compared with a year ago, hitting a three-year high. Peng Chun, chairman of BoCom, described it as “the best-performing year” since 2016 at their annual meetings.

Meanwhile, the top six banks all saw revenue and asset growth in 2018, led by ICBC.

Also in the past year, the big lenders managed to keep their capital adequacy ratios, a key measurement of insolvency risk, at healthy levels.

Asset quality improved in 2018 as well, with non-performing loan ratios ranging from 0.86 percent to 1.59 percent, below the sector average of 1.89 percent, the banks’ reports showed.

Looking ahead, the listed banks all noted that they will focus on key areas in the real economy, lend more support to major national development strategies and channel more funding into inclusive finance and private enterprises.