Retail Banking 2020Evolution or Revolution?
Learn more
Project BlueAssessing the future trends for financial services
Learn more

Banking Newsletter - A newsletter for the China banking community 

View this page in: 简体中文版

Analysis of China listed banks' results for the third quarter of 2016

Coming soon

Review and outlook of China's banking industry for the first half of 2016

Due to interest rate cuts and VAT reform, Chinese banks' net profit growth has been under persistent pressure in 1H 2016. Listed banks' net interest spread (NIS) and net interest margin (NIM) continue to narrow year-on-year.

Listed banks' credit risk continued to grow in 1H 2016. Most listed banks accelerated non-performing loan (NPL) write-offs and transfers, which helped to ease the growth of NPL. That said, the NPL, as well as special mention loans and loans that have past due but not yet impaired, are still standing at a high level. Given a sluggish economic growth these pressures are likely to increase further in 2H 2016.

Due to the slower growth in net profits in 1H 2016, most listed banks' capital adequacy is under pressure. It is evident that listed banks need to improve their internal capital generating capability and to look for a less capital-intensive growth model.


Previous issues of Banking Newsletter for the China banking community
Margarita Ho
Tel: +[86] (10) 6533 2368 Email