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Major Chinese state-owned banks post earnings growth amid ‘positive signs of recovery’ in economy: Agricultural Bank of China, China Construction Bank, Bank Of China and Postal Savings Bank of China
- This year, Agricultural Bank of China ‘will act as a major bank serving the real economy and as a cornerstone of financial stability’, chairman says
- BOC will ‘serve as a bedrock of financial stability’: exchange filing
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Yuke Xiein Beijing
The Agricultural Bank of China (ABC), China Construction Bank (CCB), Bank of China (BOC) and Postal Savings Bank of China (PSBC) – four of China’s largest state-owned lenders – posted steady earnings growth for 2023 even as their margins faced persistent downwards pressure amid government calls to slash rates and inject liquidity into the country’s slumping property sector.
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ABC, China’s third-largest bank by assets, saw its net profit jump 4.2 per cent to 269.8 billion yuan (US$37.3 billion), it said in a stock-exchange filing on Thursday. Its operating income – consisting mainly of interest income and fees – also edged up slightly to 695.5 billion yuan, from 695.3 billion yuan the previous year.
“The overall economy is showing positive signs of recovery … creating a good environment for the steady profit growth of the bank,” said Gu Shu, the bank’s chairman.
“In 2024, we will adhere to the general principle of pursuing progress while maintaining stability, and will act as a major bank serving the real economy and as a cornerstone of financial stability.”
ABC’s non-performing loan (NPL) ratio, a metric of potential bank losses, improved to 1.33 per cent from 1.37 per cent, marking a third consecutive year of decline, Gu said.
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