, China

China's big four banks hit double-digit net interest income growth

BOC registered the biggest growth at 16.1% in Q3.

The Big-4 banks - ICBC, CCB, ABC and BOC - achieved double-digit growth in net interest income of 13.8%, 10.2%, 13.9% and 16.1% yoy respectively, aided by NIM expansion of 6-12bp yoy. UOB Kay Hian said BoCom’s net interest income was stagnant at (US$4.8b) Rmb32.1b as its NIM was compressed by a hefty 22bp yoy due to its heavy reliance on funding from the interbank market with net interbank liabilities-tototal liabilities at 17.4%.

Here's more from UOB Kay Hian:

NIM expansion due to optimisation of loan mix. ICBC, CCB and ABC have reduced low-margin discounted bills by 59.3%, 79.8% and 70.2% yoy respectively so as to expand corporate and personal loans. CCB achieved robust NIM expansion of 5bp qoq, compared with flat qoq NIMs for most of its peers.

We note the stronger deposit franchise at CCB and ABC with demand deposits expanding 12.9% and 13.9% yoy respectively. Their CASA ratios improved by 2.6ppt and 2.4ppt yoy to 55.3% and 57.1% respectively.

Fee income affected by regulatory headwinds. Fees were soft due to seasonality and the regulatory crackdown on wealth management products (WMP) and bancassurance. Fee income for ICBC and ABC fell 3.3% and 28.9% yoy respectively. 

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

What is Lorem Ipsum?
What is Lorem Ipsum? Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Exclusives

Sed molestie interdum dui sit amet egestas
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
CIMB Niaga leads the way in captivating Indonesia’s youth
The bank’s digital solutions are winning over younger generations with 3.2M mobile users and 96% digital transaction rate in 2023.