China's Big Five lenders see margins shrink in the first quarter By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 29 2024
0mins
Should l Buy ?
Source: Investing.com
- Margins at China's Big Five Lenders: Margins at major Chinese banks decreased in the first quarter due to pressure to support property developers and weak loan demand.
- Net Interest Margin (NIM) Changes: Net interest margins of banks like Agricultural Bank of China, Industrial and Commercial Bank of China, Bank of China, China Construction Bank, and Bank of Communications narrowed during the period.
- Profit Changes: ICBC, BoC, and CCB saw over 2% drops in net profit compared to the same period last year, while AgBank had a 1.63% decrease. BoCom was an exception with a 1.44% increase in net profit.
- Non-Performing Loan Ratios: The five major lenders maintained flat or slightly improved non-performing loan ratios by the end of March.
- Outlook for Smaller Banks: S&P highlighted concerns for smaller banks, especially those in city and rural areas, due to challenges like the prolonged property downcycle and local economic conditions.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
