Business Standard

China's mega banks post worst profit slump in a decade on bad debt wave

Pressured by the government to lend to businesses, loans and advances at the four big banks rose between 7% and 10% in the first half, even though bad debt surged

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Tensions between the world’s two super powers over Hong Kong has sparked tit-for-tat sanctions on politicians and officials on both sides over the past few weeks

China’s biggest banks posted their worst profit declines in more than a decade as bad debt ballooned and the government called on them to help backstop the slumping economy, putting pressure on plans to pay dividends next year.

Profit at Industrial & Commercial Bank of China Ltd., the world’s largest lender by assets, China Construction Bank Corp., the second-largest, Agricultural Bank of China Ltd. and Bank of China Ltd. dropped by at least 10% in the first half, the lenders said on Sunday. Loan loss provisions jumped between 27% and 97% at the four banks.

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First Published: Aug 30 2020 | 11:12 PM IST

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