China’s top lenders reported robust profit growth in the third quarter despite ongoing concerns about the property sector and slowing economic growth.
Mainland China’s six largest lenders all saw profits climb higher in the third quarter, thus far evading the impact of piling debt pressures in the property sector, most notably at Evergrande.
Bank of Communications led the pack with a 39 percent increase in net profit to 22.3 billion yuan.
Postal Savings Bank posted 22.5 percent net profit increase (to 23.5 billion yuan) followed by China Construction Bank (15.6 percent to 78.9 billion yuan), Agricultural Bank of China (14 percent to 64.4 billion yuan) and ICBC (10.6 percent to 88.3 billion yuan).
Property Shock Not Felt
China’s top banks posted positive results despite growing concerns in the property sector which accounts for an estimated 8 percent of lending, according to analysts.
Non-performing loan ratios were also either flat or inched lower, maintaining below the industry average of 1.87 percent.
Onlookers expect some of the impact to be reflected in balance sheets closer to the end of the year or in 2022 should default risks continue to rise amongst Chinese developers.
