{"id":1920814,"date":"2023-04-28T11:10:34","date_gmt":"2023-04-28T15:10:34","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinas-top-banks-post-shrinking-margins-in-q1\/"},"modified":"2023-04-28T11:15:23","modified_gmt":"2023-04-28T15:15:23","slug":"chinas-top-banks-post-shrinking-margins-in-q1","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinas-top-banks-post-shrinking-margins-in-q1\/","title":{"rendered":"China\u2019s top banks post shrinking margins in Q1"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fchinas-top-banks-post-shrinking-margins-in-q1%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1920814&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<h2>China&#8217;s Top Banks Post Shrinking Margins in Q1<\/h2>\n<p>By Ziyi Tang and Engen Tham<\/p>\n<p>Borrowers are struggling to repay loans after three years of China\u2019s zero-COVID policy hit the economy and Beijing has put pressure on lenders to reduce individual and company debt burdens by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-sees-double-digit-drop-in-approval-among-black-voters-even-worse-among-young-black-voters-survey\/\" title=\"Biden Sees Double-Digit Drop In Approval Among Black Voters, Even Worse Among Young Black Voters: Survey\">cutting interest rates<\/a>.<\/p>\n<p>Five of China\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinas-top-banks-post-shrinking-margins-in-q1\/\" title=\"China\u2019s top banks post shrinking margins in Q1\">largest lenders posted shrinking margins<\/a> in the first quarter on Friday, as loan re-pricing bites.<\/p>\n<ul>\n<li>Industrial and Commercial Bank of China (ICBC), the world\u2019s largest commercial lender by assets, posted a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/futures-pare-gains-as-bank-stocks-drag-on-svb-contagion-fears\/\" title=\"Futures pare gains as bank stocks drag on SVB contagion fears\">net interest margin<\/a> (NIM) \u2013 a key indicator of bank profitability \u2013 of 1.77% at the end of March, down from 1.92% from the end of the prior quarter.<\/li>\n<li>Agricultural Bank of China Ltd (AgBank)<\/li>\n<li>Bank of China (BoC)<\/li>\n<li>China\u2019s Bank of Communications Co Ltd (BoCom)<\/li>\n<li>China Construction Bank Corp (CCB)<\/li>\n<\/ul>\n<p>All lenders posted flat to around 5% net profit growth with BoCom logging the highest first<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/european-shares-flat-as-ubs-retailers-slide-offset-unilever-boost\/\" title=\"European shares flat as UBS, retailers slide offset Unilever boost\">-quarter net profit<\/a> at over 5%. AgBank came in second with 1.75% as the others posted flat net profit growth over the same period.<\/p>\n<p>Non-performing loan (NPL) ratios held steady, with most lenders flat at the end of March from the end of the prior quarter, though BoC\u2019s ticked down slightly from 1.32% at the end of March to 1.18% at the end of December last year.<\/p>\n<p>\u201cChinese banks are likely to see further pressure on NIM, driven by mortgage repricing to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/politifact-faceplants-with-hilariously-bad-fact-check-of-maria-bartiromo\/\" title=\"PolitiFact Faceplants With Hilariously Bad \u201cFact Check\u201d of Maria Bartiromo\">reduced rates<\/a> and ongoing deposit competition, as well as continued policy directives on reducing borrowers\u2019 costs especially for micro-and small enterprises,\u201d said Elaine Xu, Director of APAC Financial Institution, Fitch Ratings.<\/p>\n<p>Gary Ng, senior economist at Natixis Corporate and Investment Bank said the banking sector may face NIM pressure as China gears itself towards common prosperity, given that the sector is one of the most profitable in the country.<\/p>\n<p>While bad loans appear to be stable, analysts said NPLs may peak later.<\/p>\n<p>\u201cWe expect property NPLs to peak in 2024 as the recovery process takes time, especially in lower-tier Chinese cities,\u201d said Ming Tan, Director at S&#038;P Global Ratings.<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Ziyi Tang and Engen Tham SHANGHAI\/BEIJING (Reuters) \u2013 Five of China\u2019s largest lenders posted shrinking margins in the first quarter on Friday, as loan re-pricing bites. Borrowers are struggling to repay loans after three years of China\u2019s zero-COVID policy hit the economy and Beijing has put pressure on lenders to reduce individual and company<\/p>\n","protected":false},"author":66,"featured_media":1920815,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[8961,5909,14356,4899,14365],"class_list":["post-1920814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann","tag-banks","tag-chinas","tag-margins","tag-post","tag-shrinking"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1920814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1920814"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1920814\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1920815"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1920814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1920814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1920814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}