China’s Big Four state-owned banks’ first-quarter earnings growth comes in line with analysts’ expectations

Name: China’s economy expands record 18.3 per cent in the first quarter of 2021
Uploaded: 2021-04-29T13:45:28.000Z
Duration: 2 min 1 s
Description: China’s economy expands record 18.3 per cent in the first quarter of 2021

China Construction Bank led the profit growth, reporting a net income of 83.1 billion yuan (US$12.85 billion), up 2.8 per cent year on year

ICBC was the only major bank that did not see a drop in its bad-loan ratio, which was unchanged at 1.58 per cent at the end of March

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ICBC’s first-quarter profit growth was the lowest among China’s Big Four state-owned banks. Photo: Reuters

Georgina LeeandDaniel Ren

Published: 9:45pm, 29 Apr 2021Updated: 1:21am, 30 Apr 2021

Leading state-owned Chinese banks reported first-quarter profit growth in line with analysts’ expectations while exceeding the mainland’s industry average of a 1.5 per cent profit increase, as they were helped by lower bad-loan provisions and continuing economic recovery.

China Construction Bank led the profit growth among the Big Four state-owned lenders, reporting a net income of 83.1 billion yuan (US$12.85 billion), up 2.8 per cent from the same period in 2020.

Industrial and Commercial Bank of China (ICBC), the mainland’s largest lender by assets, reported a 1.5 per cent year on year rise in net profit to 85.7 billion yuan for the three months ended March.

First-quarter profit at Bank of China rose 2.7 per cent year on year to 54 billion yuan, while Agricultural Bank of China said its earnings in the first three months of the year grew 2.6 per cent to 65.9 billion yuan.

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China’s economy expands record 18.3 per cent in the first quarter of 2021

“Their earnings results met market expectations,” said Ivan Li, a fund manager at Shanghai-based Loyal Wealth Management.