Non-performing loan

Bad loans rise sharply in Shanghai bank sector

Smaller companies are falling behind in loan repayments.

The Shanghai branches of several mid-sized mainland banks have seen rapid increases in bad loans this year as private companies feel the pinch of the nationwide economic slowdown.

Friday, 21 June, 2013, 7:36am

Bocom says no new capital needed as profit jumps

Chairman Hu Huaibang said Bocom's non-performing loans were manageable. Photo: Dickson Lee

Bank of Communications (Bocom) said its existing capital could sustain the growth of the bank and it had no plan to raise funds in the equity market. The bank's net profit jumped 15 per cent to 58.3 billion yuan (HK$72.8 billion) last year, in line with market expectations. It declared a final dividend of 24 fen.

28 Mar 2013 - 6:31am

Mainland banks expect revenue and margins to drop, survey says

Mainland lenders face revenue and margin weakness. Photo: Bloomberg

The revenue and margins of the mainland banking industry are expected to fall in the next three years, according to a survey by the China Banking Association and PricewaterhouseCoopers China.

8 Jan 2013 - 4:21am

Mainland banks' bad loans worse than expected

Corporate borrowers are refinancing themselves by simply borrowing from other sources to repay maturing bank loans. Photo: Reuters

Just how big the pool of bad loans is in the mainland's banking system has become a hot topic among economists and bankers, and even China's banking regulator, at financial forums in Beijing recently.

19 Dec 2012 - 2:37am

Mainland's banks tainted by bad assets, Fitch warns

HKMA chief executive Norman Chan Tak-lam

Deterioration of asset quality and potential risks from wealth management products make for a gloomy outlook for mainland lenders next year, Fitch Ratings said yesterday.

The outlook for banks in the Asia-Pacific is stable, but China is one of the weakest spots in the region, the global credit rating agency said in a report.

8 May 2015 - 9:46am

Bad-loan risks of mainland banks manageable, says industry watchdog

Cai Esheng says bad-loans risks on the mainland under control.

Mainland bad-loan risks are manageable although non-performing loans are on the rise, China Banking Regulatory Commission vice-chairman Cai Esheng said.

Although non-performing loans in some regions, such as Wenzhou, were rising, bad-loan risks were still under control, Cai said at a forum hosted by Caijing magazine yesterday.

8 May 2015 - 9:46am

Mainland banks' bad loans keep on rising

Non-performing loans at mainland banks have risen for a fourth consecutive quarter, and analysts say economic uncertainty will continue to put pressure on the asset quality of lenders.

Bad loans in the third quarter rose 22.4 billion yuan (HK$27.7 billion), or 4.9 per cent, to 478.8 billion yuan from the second quarter, the China Banking Regulatory Commission (CBRC) said yesterday.

8 May 2015 - 9:46am

Bad loans are staying at an 'excellent range'

Non-performing loans have stayed below 1 per cent with some normal volatility, says Bank of China's Li Lihui. Photo: KY Cheng

The mainland's leading state-owned lenders expect non-performing loans to remain steady in the fourth quarter as the economy stabilises.

8 May 2015 - 9:46am

Citic Bank provisions for bad debts to hurt profit next year

Citic Bank is stepping up its provisioning against potential bad loans, which analysts said is likely to weigh on its profit next year.

"The increase in provisions is our advanced plan to meet the regulatory requirement on the [loan-loss] provision ratio," Wang Kang, general manager of Citic's planning and finance department, said yesterday.

31 Oct 2012 - 2:30am

Better loan performance sees ICBC profit rise 14.9pc

ICBC profit rises 14.9 per cent on better loan results.

Industrial and Commercial Bank of China (ICBC), the world's largest bank by assets, has posted a forecast-beating 14.9 per cent rise in third-quarter earnings. The gains came from higher profit margins on its loans and a reduction in its provisions for bad loans.

31 Oct 2012 - 8:16am

Competition eats into CMB margins

Citic Bank made a loan provision of 4 billion yuan compared with 1.81 billion yuan at the same time last year. Photo: Bloomberg

China Merchants Bank's net profit grew 16.6 per cent in the third quarter from a year earlier, driven by a rise in interest income, but net interest margin dipped amid fierce competition.

Earnings at the mainland's sixth-largest lender by assets reached 11.41 billion yuan (HK$14.16 billion).

30 Oct 2012 - 4:25am

Agricultural Bank Q3 results beat forecasts

Analysts are upbeat that increasing demand for loans on the mainland will buoy Agricultural Bank of China's earnings through the current quarter as well. Photo: Bloomberg

Agricultural Bank of China posted a forecast-beating net profit growth of 16 per cent in the third quarter from a year ago, and analysts think increased demand for loans on the mainland will buoy earnings this quarter.

27 Oct 2012 - 2:52am

BOC net profit rises 16.6pc to beat market forecasts

BOC net jumps 16.6 pc to beat market target

Bank of China, the fourth-largest mainland bank by market value, beat market forecasts with a 16.6 per cent increase in third-quarter net profit from a year ago, but analysts say the slowing economy and tightening interest margins will weigh on earnings in coming quarters.

26 Oct 2012 - 3:38am

Farmers lose 110m yuan in Jiangsu province

A farmer takes a break at his Jiangsu field. The loss of 110 million yuan from rural financing co-operatives which are easy targets due to the lack of a supervisor. Photo: Reuters

The heads of four financial businesses in Jiangsu province have gone missing with 110 million yuan (HK$135 million) of farmers' deposits, as the mainland economic slowdown exposes regulatory loopholes.

8 May 2015 - 9:46am

Rise in bad loans at mainland banks no threat to profits

Rise in bad loans at mainland banks no threat to profits

The level of non-performing loans is expected to keep rising at mainland banks, but analysts say the relatively slow pace is unlikely to weigh on their profits this year.

20 Oct 2012 - 2:35am