China News Service, Beijing, February 21 (Reporter Wang Enbo) China's commercial banks' net profit growth will slow down in 2023, and the industry is optimistic that banking industry profits will remain stable this year.
The State Administration of Financial Supervision of China announced on the 21st that for the whole year of 2023, Chinese commercial banks achieved a cumulative net profit of 2.4 trillion yuan (RMB, the same below), a year-on-year increase of 3.2%, and the growth rate shrank by 2.2 percentage points compared with the same period last year. The average capital profit rate is 8.93%, and the average asset profit rate is 0.7%.
The Bank of China Research Institute pointed out that as the economy recovers, the banking industry has increased its funding guarantees. Since 2023, the net interest margin of the banking industry has continued to narrow with the decline of the loan market prime rate (LPR). Coupled with the weak growth of non-interest income, the annual net profit growth rate has dropped. Looking forward to 2024, under the economic growth target, various policies are expected to be flexible and appropriate, and the synergy will provide a macro foundation for the growth of bank deposits and loans and lay the foundation for industry profitability.
The research team of China Minsheng Bank is also optimistic that the bank's profit growth is expected to remain stable. The agency judged that the current bank provision coverage ratio is at a high level, and there is still room for savings in provision costs. At the same time, the central bank has frequently stated that it protects the bottom line of bank profits, which is conducive to easing low-price and disorderly competition on the asset side and enhancing the resilience of bank profit growth. . It is expected that bank performance will not fluctuate significantly this year and profit growth will remain stable.
Data disclosed that day also showed that China's banking industry's total asset growth and credit quality remained stable. At the end of the fourth quarter of 2023, the total domestic and foreign currency assets of banking financial institutions were 417.3 trillion yuan, a year-on-year increase of 9.9%. During the same period, the balance of non-performing loans of commercial banks was 3.2 trillion yuan, basically the same as the end of the previous quarter; the non-performing loan ratio of commercial banks was 1.59%, down 0.02 percentage points from the end of the previous quarter.
At the end of the fourth quarter of 2023, the loan balance of banking financial institutions for small and micro enterprises was 70.9 trillion yuan, of which the balance of inclusive small and micro enterprise loans with a total single-household credit limit of 10 million yuan and below was 29.1 trillion yuan, a year-on-year increase of 23.3 %. The balance of loans for affordable housing projects is 6.3 trillion yuan. (over)