Mainland bank non-performing loans set to rise

PricewaterhouseCoopers China predicts non-performing loans in the mainland will rise this year but would be controllable, while major banks' net interest spread could be under pressure.

The firm said a total of 37 mainland-and Hong Kong-listed banks took up 71.4 percent of the total assets of all mainland commercial banks and 76.8 percent of the total net profit last year.

Large banks maintained a 5 percent average net profit growth last year and incorporated commercial banks overall have seen 5-10 percent growth last year, said PwC China.

The difference in profit growth between urban and rural commercial banks widened. Some of them saw double-digit growth and some had a double-digit drop in profit last year.

PwC China expects mainland bank revenue from intermediate businesses, including credit card payments, to drop as the coronavirus pandemic impacts the transportation, catering and tourism sectors.