The big six state-owned banks saw impressive profit growth the first half of 2022, as Chinese regulators pushed for increased credit extension in order to keep the economy on an even keel.
In the first half of 2022 China’s big six state-owned banks, consisting of Agricultural Bank of China (ABC), Bank of China (BOC), Bank of Communications (BOCOM), China Construction Bank (CCB), Industrial and Commercial Bank of China (ICBC) and Postal Savings Bank of China (PSBC), collectively posted net profits of 673.171 billion yuan, for year-on-year (YoY) growth of 6.03%.
ICBC’s net profits totalled 171.506 billion yuan for the largest out of the big six, while PSBC’s net profits saw the most rapid growth, with a YoY increase of 14.88%.
The total assets of the big six banks was 159 trillion yuan as of the end of the first half. ICBC’s balance sheet was the largest of the big six at 38.74 trillion yuan, while ABC and CCB both had assets in excess of 30 trillion yuan.
China’s big six state-owned banks in the first half of 2022
|Bank||Operating Revenue (billion yuan)||YoY growth||Net profits (billion yuan)||YoY growth|
|Agricultural Bank of China||387.196||5.93%||128.945||5.45%|
|Bank of China||313.254||3.39%||119.924||6.30%|
|China Construction Bank||435.97||4.72%||161.642||5.44%|
|Bank of Communications||143.386||7.09%||44.04||4.81%|
Several of the big six banks saw their lending levels reach record highs in the first half of 2022, as regulators pushed for more credit extension to keep the Chinese economy on an even keel.
This included ICBC, whose new loans totalled 1.61 trillion yuan in the first half, and PSBC, whose lending increased by 530 billion yuan, 60.823 billion yuan more than the same period last year.
As of the end of the first half the net interest spread of the big six banks had narrowed between 3 to 7 basis points compared to the first quarter, with regulators also pushing for cuts to financing costs for actors in the real economy.
As of the end of the second half ABC and CCB had non-performing loan (NPL) ratios of 1.41% and 1.4% respectively, holding steady with the end of the first quarter.
ICBC and BOCOM had NPL ratios of 1.41% and 1.46%, for declines of 1 basis points compared to the end of the first quarter. PSBC’s NPL ratio was 0.83%, for an increase of 1 basis point, while BOC’s NPL ratio was 1.31%, for a rise of 3 basis points.