<\/p>\n
Fees contracted for the first time in 5 years a quarter earlier.<\/p>\n
The net profit of 42 A-share banks in China declined by 0.81% in Q1, at the heels of net interest margins contracting for the fourth-straight year in 2023, and with fees contracting for the first time in 5 years.<\/p>\n
Operating income contracted by 1.73% in Q1, according to data gathered by EY Greater China for its latest Listed Banks in China report.<\/p>\n
The banks\u2019 assets grew by 3.93%, albeit 1.69 percentage points (ppt) slower than the 5.62% growth recorded in Q1 2023. The non-performing loan (NPL) ratio declined by 0.01ppt to 1.25%.<\/p>\n
Overall, listed banks in China remained under great operational pressure in Q1 2024, EY said.<\/p>\n
Chinese banks\u2019 have been under pressure since 2023, amidst complexity and looming uncertainty in the year\u2019s macro-environment, EY said.<\/p>\n
For 2023, 58 banks in China reported an average decline in net interest margin for the fourth-straight year to 1.69% in 2023. This is 25 basis points lower than in 2022.<\/p>\n
Net interest income also fell by 2.98% in 2023 compared to 2022\u2013 reportedly the first yearly decline since 2017.<\/p>\n
Fee and commission income fell by 8.05% by end-2023.<\/p>\n
Given the decrease in net interest income and net fee and commission income, listed banks reported a total operating income of over RMB5.86t in 2023, a 0.98% decline, EY said.<\/p>\n
Operating results reportedly varied across different types of banks: small and medium-sized banks, in particular, need to strengthen their presence and improve resilience to contravene the changes in the\u00a0 <\/span>macro environment when compared with large banks, the management consulting firm\u2019s report warned.<\/p>\n <\/p>","protected":false},"excerpt":{"rendered":" Fees contracted for the first time in 5 years a quarter earlier. The net profit of 42 A-share banks in China declined by 0.81% in Q1, at the heels of net interest margins contracting for the fourth-straight year in 2023, and with fees contracting for the first time in 5 years. Operating income contracted by […]<\/p>\n","protected":false},"author":1,"featured_media":1672,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1670","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/05\/ICBC-China-1-1140x445.jpeg",1140,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/05\/ICBC-China-1-463x348.jpeg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/05\/ICBC-China-1-300x200.jpeg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/05\/ICBC-China-1.jpeg",2000,1334,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=1670"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1670\/revisions"}],"predecessor-version":[{"id":1671,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1670\/revisions\/1671"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/1672"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=1670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=1670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=1670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}