Slowing economy takes toll
Updated: 2013-08-15 09:24
By Wang Xiaotian (China Daily)
Second-quarter asset quality loses its value
The asset quality of Chinese lenders deteriorated further in the second quarter as the economy slowed, data from the China Banking Regulatory Commission and the interim results of listed banks show.
Domestic banks' non-performing loans rose by 13 billion yuan ($2.12 billion) from April to June, the seventh consecutive quarterly increase, the CBRC said in an online statement on Wednesday.
Total NPLs stood at 539.5 billion yuan at the end of June, with increases across all categories of banks - State-owned lenders, joint stock banks and urban and rural banks.
The seven-quarter streak of increases was the longest in at least nine years, according to data compiled by Bloomberg News.
The overall deterioration in loan quality was also reflected in the initial first-half results of China's listed banks. As of Wednesday, three of 16 listed commercial lenders had released their interim results.
All Chinese banks, including State-owned lenders, joint stock banks and urban and rural banks, reported an increase in their nonperforming loans, which stood at 539.5 billion yuan at the end of June. Such loans have increased for seven consecutive quarters.[Photo/China Daily]
Bad loans at the Shanghai Pudong Development Bank Co Ltd rose 2.3 billion yuan half-on-half. The ratio of such loans to total outstanding loans was 0.67 percent as of June, up 0.09 of a percentage point, said the lender on Tuesday.