Lenders' asset quality declines further in Q1
Updated: 2013-05-03 01:24
By WANG XIAOTIAN (China Daily)
|
||||||||
Slower profit growth among banks also added to concerns over the worsening asset quality.
In the first quarter, the net profit growth of China Citic Bank, Ping An Bank, Agricultural Bank of China and Bank of China all fell to below 10 percent.
"More than 80 percent of the asset quality problems caused by small and medium enterprises were concentrated in the Yangtze River Delta, which was the hardest hit region by this round of economic restructuring," Minsheng Bank said in its first quarter results. Minsheng's NPL ratio for the SME sector jumped by 86 basis points at the end of 2012 from six months earlier.
Last month, Standard & Poor's warned that China has to fend off rising bad loans after keeping recession at bay, amid media reports that Chinese lenders' NPL ratios increased in the first quarter to 0.99 percent.
China Business News reported in April that by the end of March, outstanding NPLs stood at 524.3 billion yuan, up 20.7 percent year-on-year, from the beginning of the year, citing figures from the China Banking Regulatory Commission.
The amount of bad loans is likely to continue rising, the newspaper quoted Shang Fulin, chairman of the CBRC, as saying.
By the end of 2012, outstanding NPLs rose 64.7 billion yuan to 492.9 billion yuan compared with three months earlier, while the NPL ratio fell 0.01 percentage points to 0.95 percent, according to CBRC data.
- Only the fittest investment banks will survive: BCG
- Agricultural Bank of China Q1 net profit up 8%
- China Construction Bank Q1 net profit up 16%
- Minsheng Bank Q1 net profit up 20%
- Chinese banks see NPL ratio drop in 2012
- Industrial Bank net profits up 32% in Q1
- Loan guidance is good for banks, report says
- Michelle lays roses at site along Berlin Wall
- Historic space lecture in Tiangong-1 commences
- 'Sopranos' Star James Gandolfini dead at 51
- UN: Number of refugees hits 18-year high
- Slide: Jet exercises from aircraft carrier
- Talks establish fishery hotline
- Foreign buyers eye Chinese drones
- UN chief hails China's peacekeepers
Most Viewed
Editor's Picks
Pumping up power of consumption |
From China with love and care |
From the classroom to the boardroom |
Schools open overseas campus |
Domestic power of new energy |
Clearing the air |
Today's Top News
Shenzhou X astronaut gives lecture today
US told to reassess duties on Chinese paper
Chinese seek greater share of satellite market
Russia rejects Obama's nuke cut proposal
US immigration bill sees Senate breakthrough
Brazilian cities revoke fare hikes
Moody's warns on China's local govt debt
Air quality in major cities drops in May
US Weekly
Geared to go |
The place to be |