Banks' assets expand, profits fall in H1

Tracy Li
Chinese banks posted steady assets growth and falling profits in the first half, according to data from the China Banking and Insurance Regulatory Commission.
Tracy Li

Chinese banks posted steady assets growth and falling profits in the first half, according to data from the top industry regulator.

Local and foreign currency assets of banking financial institutions were 309.4 trillion yuan (US$44.4 trillion) by the end of the second quarter, a year-on-year increase of 9.7 percent, the China Banking and Insurance Regulatory Commission said.

Around 40 percent of that was contributed by large state-owned lenders while joint-stock commercial banks saw their assets grow by nearly 18 percent.

In the first half, banks realized a cumulative net profit of 1.0 trillion yuan, down 9.4 percent compared with a year ago, the watchdog said.

By the end of June, the balance of non-performing loans of commercial banks was 2.74 trillion yuan, an increase of 124.3 billion yuan from the end of the previous quarter and their non-performing loan ratio stood at 1.94 percent, up 0.03 percentage points quarter over quarter.

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