Key facts
- ICBC reported third-quarter net profit growth of 10% year on year.
- Bank of China reported 6.4% net profit growth, the slowest of the five lenders.
- China Construction Bank said its net interest margin slightly fell to 1.36%.
- Impairment charges rose as the lenders moved to replenish loan-loss provisions.
- Bank of Communications said CXMT Technology's July IPO drove its net trading gains.
- AgBank and BoCom reported non-performing loan ratios of 1.23% and 1.29%.
Five of China's largest state-owned banks reported third-quarter net profit growth of between 6% and 11% year on year, each posting its fastest quarterly growth since 2021 or 2022, Reuters reported in an October 30 dispatch. The lenders pointed to stabilising net interest margins and steadier asset quality, while a slowing economy continued to weigh on credit demand.
Industrial and Commercial Bank of China, the world's largest lender by assets, reported a 10% rise in third-quarter net profit. Agricultural Bank of China, China Construction Bank and Bank of Communications reported growth of 10.8%, 9.8% and 10.1% respectively. Bank of China, with the greatest overseas exposure of the five, reported 6.4% growth.
Net interest margin held steady at ICBC, AgBank and BOC, edged up at BoCom and slightly fell to 1.36% at CCB. Non-performing loan ratios were flat at ICBC, CCB and BOC at the end of September from three months earlier; AgBank and BoCom reported 1.23% and 1.29%. Impairment charges rose as the lenders rebuilt loan-loss provisions.
Analysts cited bond gains as a key earnings driver. Xing Zhaopeng of ANZ said the support cannot last with bond yields very low. Elaine Xu of Fitch Ratings said an earlier-than-expected margin recovery and broadly stable credit costs put the large banks ahead of smaller peers. Nicholas Zhu of Moody's flagged emerging asset quality risk in loans to technology and innovation sectors.