The five big Chinese lenders this week posted annual growth in their net profits of more than 3.5%, but warned that the foundation of the country’s recovery “they are not solid yet”.
He Bank of Communications Co Ltd (BoCom) and the Bank of China (BoC) registered annual growth of their net profits slightly above 5% on Thursday.
He Agricultural Bank of China Ltd (AgBank)Thursday, and China Construction Bank Corp.on Wednesday, registered even higher figures, with an annual growth in net profit of more than 7%.
He Industrial and Commercial Bank of China (ICBC) the world’s largest publicly traded lender by assets, posted annual net income growth of 3.5%.
The “Big Five” Loan Portfoliosare well diversified and adequately provisioned”, said Ming Tan, director of S&P Global Ratings.
Despite the good results, all five warned of global banking turmoil and internal risks.
“The national economy experienced a stable recovery, but the foundations of the recovery were not yet solidAgBank stated in its stock market filing.
At BoCom, the focus was on the challenges of the real estate market.
“Liquidity tensions in the real estate sector will still take time to recover”, said Lin Hua, chief risk officer at BoCom, adding that the continued shocks will affect the quality of mortgage assets.
In the past year, the Chinese real estate sector has been rocked by successive defaults on bonds and developer loans, as previous policy moves to curb leverage led to a liquidity crisis across the industry.
“The pressure on the net interest margin and the sources of risk in the real estate sector and in some weak state-owned companies continue to be the main challengesMing said.
Source: Reuters
Source: Gestion
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