Bad loans rise to 3.95 trillion yuan

Bad loans among Chinese commercial banks rose by 149.5 billion yuan (HK$163.5 billion) to 3.95 trillion yuan by the end of last year, with a non-performing loan ratio of 1.62 percent, China's financial regulator said.

The National Financial Regulatory Administration also said yesterday that it will focus on the reform and risk control of small and medium banks in cooperation with local governments and boost the capability of smaller lenders in management and operation.

The ratio of loans due 90 days or more to NPL in commercial banks was 84.2 percent, which NFRA said remained at a "relatively low level."

The regulator also revealed that 3 trillion yuan worth of bad assets was disposed of in 2023.

Moreover, the balance of credit loss reserves rose by 476.8 billion yuan. And the provision coverage ratio was 205 percent.

Additionally, the net profit of commercial banks grew 3.24 percent yearly to 2.38 trillion yuan.