, China

Chinese megabanks extend profit decline as credit boom fades

Shanghai- and Shenzhen-listed banks are likely to see 6.7% increase in profit.

Chinese megabanks are poised to post single-digit profit growth for the fifth consecutive year in 2018 in line with the slowdown in the world’s second largest economy, reports South China Morning Post. 

Also readChinese banks struggle to strike balance between curbing risk and lending

The earnings of banks traded on the Shanghai and Shenzhen bourses are likely to rise 6.7% YoY in 2018, according to a forecast from Ping An Securities. This represents a sharp decline when banks in the Mainland reported annualised profit gains of 49% in the decade between 2003-2013 amidst the country’s debt binge.

“[T]hey mainly relied on a credit boom to achieve profit increases,” Wang Fang, chairman of Ye Lang Capital told SCMP. “The stable performance was still a result of easy credit, rather than better financial services.”

Also readChinese banks raise record-high $48b in Q1 to plug capital crunch

Cracks are already showing in the country’s bond and credit market as delinquencies rose to a record $17.88b (RMB119.6b) in January as credit-starved corporates failed to repay their debts amidst the liquidity crunch, according to an earlier note from DBS.

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.