China’s biggest bank, and the world’s largest bank Industrial & Commercial Bank of China (ICBC) has grown in profit, with a calculated net profit of 82.0 billion yuan in the first quarter. Report shows that the bank did marvelously more than it expected within the year’s first three months.
The ICBC measures the world’s largest bank in terms of assets and in all other ramifications. It’s also noted that increasing level of bad loans may necessitate easing up on pump priming measures.
Meanwhile, China Construction Bank hit a 4.2 percent increase to the tone of 76.9 billion yuan. The other “Big Four” banks, like Bank of China and Agricultural Bank of China experienced same level of increases at same period. Following China’s stock market 2018 experiencing drop in 2018, the country’s authorities setup a massive program at the first quarter of this year, which targeted the achieved result and also shielded it economy from the trade war with USA.
The government have also pointed out in several ways that it will scrutinize its credit more closely this time to deal with possible overheating, causing the benchmark Shanghai Composite Index to drop more than five percent since closing at 2019 high of 3,270.80 on April 19.
Industrial & Commercial Bank of China’s non-performing loans grew up to 5.2 billion yuan, which Bloomberg News noted as the largest quarterly increase in about three years. While bad loans at China Construction Bank grew by 6.6 billion yuan, the highest since 2016.
David Marshall, a senior analyst with CreditSights told Bloomberg Television, “The level of bad loans that we are seeing in Chinese banks, that’s coming through and hitting their income statements every year and forcing them to set aside more provisions, is really quite elevated, the good thing is that the economy seems to be stabilizing this year, thanks to the government stimulus measures, though credit growth “could tail off” in the second half.”
Bank of China said its quarterly profit rose 4.0 percent to 51 billion yuan and Agricultural Bank of China’s made 4.3 percent to 61.3 billion yuan.