Title: Six Major State-Owned Banks in China Achieve Positive Growth in 2023 Annual Reports
On March 28, the annual reports of the six major state-owned banks in China were collectively disclosed, showing positive growth in net profits and asset size rankings for the year 2023. Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of China, Bank of Communications, and Postal Savings Bank of China all reported increases in their net profits attributable to their parent companies, totaling 1.38 trillion yuan, up by 2.12% from the previous year.
Despite the positive growth in net profits, the total operating income of the six major banks saw a year-on-year decrease of 4.35%. Factors such as the narrowing of net interest margins, slowdown in intermediary business income growth, and fee reductions by banks were cited as reasons for the decline in operating income.
In terms of asset size rankings, Agricultural Bank of China surpassed China Construction Bank to claim the second position with total assets of 39.9 trillion yuan. The six major banks continued to reduce non-performing loans, leading to a collective decrease in the non-performing loan ratio and an increase in provision coverage ratios, enhancing their risk compensation capabilities.
The decline in revenue growth was also attributed to factors such as market fluctuations, fee reductions, and interest rate reductions, impacting agency wealth management income. Non-interest income including agency business, bank card business, and other intermediary business income saw negative growth for most major banks in 2023.
The annual reports also highlighted the efforts of the six major banks in increasing credit in key areas, supporting the real economy, and maintaining steady asset growth. The total loans of the major banks showed double-digit growth, with Agricultural Bank of China leading in expanding its loans in key areas such as manufacturing, innovation, and green development.
Overall, the 2023 annual reports of the six major state-owned banks in China reflect a mixed performance, with positive growth in net profits but a decline in operating income. The banks continue to focus on enhancing asset quality, risk management, and provision coverage to maintain stability and support economic growth.
By Qian Xiaorui, Edited by Qian Xiaorui.