Bad loans under control, says CMB

Finance | Victor Zhong 23 Mar 2021

China Merchant Bank (3968) said its non-performing loan ratio has returned to pre-pandemic levels.

President and chief director Tian Huiyu said the related risk is controllable and the impact on asset quality is limited.

The allowance coverage ratio reached 437.68 percent, up 10.9 percentage points. Wang Liang, CMB's executive director, executive vice president and chief financial officer, said that it is necessary to maintain a sound and prudent asset classification policy and maintain a relatively high level of provision coverage and asset quality.

The deposit ratio fell due to the loose monetary environment last year, said Wang. However, he expects interest rates to rise this year, making the competition more intense. Net interest margin narrowed by 12 basis points to 2.41 percent in the last quarter, while the full-year figure dropped 10 basis points to 2.49 percent.

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