China News Service, Beijing, August 22 (Reporter Wang Enbo) In response to the year-on-year decline in the net profit of Chinese commercial banks in the first half of this year, the spokesperson of the China Banking and Insurance Regulatory Commission made an analysis on the 22nd and emphasized that the banking industry's ability to withstand risks will be further enhanced.
According to official data, in the first half of 2020, China's commercial banks achieved a cumulative net profit of 1 trillion yuan (RMB, the same below), a year-on-year decrease of 9.4%, and a growth rate of 15.86 percentage points lower than the same period last year.
The aforementioned spokesperson pointed out that although net profit has declined, the industry as a whole is operating smoothly and the foundation for development is more solid. At the end of June, the liquidity coverage ratio of commercial banks was 142.4%, the provision coverage ratio was 182.4%, and the capital adequacy ratio was 14.21%. The main indicators were all within a reasonable range.
According to the spokesperson's analysis, there are two main reasons for the decline in the net profit of the banking industry: First, it continues to give profits to the real economy. Since the beginning of this year, bancassurance institutions have coordinated the short-term and long-term interests, and in accordance with the principles of commercial sustainability, through measures such as lower interest rates, fee reductions, financial restructuring, and loan deferred repayment of principal and interest, more than 870 billion has been transferred to the real economy in the first seven months. yuan. The second is to increase the intensity of non-performing disposal and provisioning. In the first half of the year, banking financial institutions handled a total of 1.1 trillion yuan of non-performing loans, a year-on-year increase of 168.9 billion yuan. At the same time, in accordance with the principle of expected credit losses, the provision for impairment was 1.3 trillion yuan, a year-on-year increase of 34.4%.
The spokesperson said that in the next step, the China Banking and Insurance Regulatory Commission will continue to guide bancassurance institutions to improve the quality and efficiency of serving the real economy, and take more powerful measures to promote the comprehensive recovery and high-quality development of the national economy. While stabilizing growth, we will do a good job in preventing risks. According to the actual situation this year, the banking system plans to dispose of about 3.4 trillion yuan of non-performing assets throughout the year, an increase of 1.1 trillion yuan over last year. The ability of the banking industry to resist risks will be further enhanced. (Finish)