Chinese bank profits grow to 1.62 trillion yuan, study findsBusiness | 15 May 2019 8:29 pm
Profit of major listed banks in China increased by 5.21 percent in 2018 to 1.62 trillion yuan (HK$1.85 trillion), benefiting from the growth in net interest income, Ernst & Young says. Forty seven listed Chinese banks were analysed.
The composition of operating revenue remained largely stable between 2016 and 2018, with net interest income accounting for the largest proportion, which was over 70 percent, of their operating revenue over the years, said EY.
The net profit growth of large commercial banks and national joint-stock commercial banks continued to expand since 2017, while that of city commercial banks and rural commercial banks decreased.
EY also analyzed the impacts of the implementation of new financial instrument standard on listed banks in China, interpreting that the provision for impairment losses on loans had increased for the listed banks, while the proportion of financial assets measured at fair value had also increased.