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China's battered banks brace for future loss as bad loans rise due to Covid

As the pandemic batters economies globally, BoC, the most international of China's large state banks, said it would keep guarding against global financial market risks in the second half

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Bank of Communications Co Ltd said on Friday it had boosted "provisions to counter the future impact of the pandemic."

Reuters Beijing/Shanghai

2 min read Last Updated : Aug 30 2020 | 5:20 PM IST

Four of China's five largest state-owned banks said they have increased their provisions against bad debt to brace for future losses due to the impact of the global coronavirus pandemic.

All five reported their biggest profit falls in at least a decade and an increase in soured loans when announcing their half-year results on Sunday and last week.

The results highlight the impact of the pandemic and the economic slowdown on Chinese banks that bucked the first-quarter global trend with higher profits and steady bad loans.

Agricultural Bank of China Ltd (AgBank) said "the lagging impact of the epidemic and the risk of

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