Four Chinese state-owned banks recorded a rise of at least 2.5 percent in their third-quarter net profit, as the reinvigorated stock market boosted non-interest income.
Industrial and Commercial Bank of China (1398) saw its net profit increase 3.3 percent year-on-year to 101.81 billion yuan (HK$111.23). Its quarterly revenue rose 2.4 percent to 201.89 billion yuan.
While net interest income fell 2 percent to 159.84 billion yuan, this was offset by growth in net fee and commission income, which increased 4.1 percent to 23.85 billion yuan.
The bank's credit impairment losses decreased by 18.5 percent to 22.13 billion yuan. As of the end of September, its non-performing loan ratio edged down 0.01 percentage point to 1.33 percent, although the outstanding balance of bad loans increased. The provision coverage ratio rose by 2.3 percentage points to 217.21 percent.
Agricultural Bank of China (1288) saw its third-quarter net profit grow nearly 4 percent to 81.35 billion yuan. For the quarter, net interest income dipped 1 percent to 144.83 billion yuan, but net fee and commission income surged nearly 24 percent to 18.44 billion yuan.
ABC's credit impairment losses narrowed by nearly 2 percent to 29.45 billion yuan.
For the first nine months, the bank's profit expanded 3 percent to 220.86 billion yuan. Its net interest margin stood at 1.3 percent.
But the income from handling fees and commissions jumped 13 percent to 69.9 billion yuan.
By September 30, ABC's NPL ratio was 1.27 percent, down 0.03 percentage points from the end of last year, while its provision coverage ratio declined to 295.08 percent.
Bank of Communications (3328) posted a more than 2 percent year-on-year rise in the third quarter profit to approximately 24 billion yuan. For the January-September period, profit grew nearly 2 percent to around 70 billion yuan.
Net interest income for the first three quarters inched up by over 1 percent to 128.65 billion yuan, though the net interest margin contracted by 8 basis points to 1.2 percent.
Net fee and commission income advanced by 0.1 percent to 29.4 billion yuan. Loan credit impairment losses shrank by nearly 2 percent to 41.33 billion yuan.
As of September, BoCom’s NPL ratio improved to 1.26 percent, down 0.05 percentage points from the end of 2024, and its provision coverage ratio increased to 209.97 percent. BoCom noted that its special-mention loan ratio was flat and its overdue loan ratio showed a slight increase year-to-date, but both ratios decreased compared to the end of the previous quarter.
China Construction Bank (0939) reported a 4.2 percent growth in the third quarter net profit to 95.28 billion yuan, despite a 1.8 percent decline in quarterly revenue to 174.38 billion yuan.
