Economics
Decade of Growth Poised to End for China Banks Stung by Bad Debt
- Surging bad-loans dragged stock valuations to record lows
- Higher provisions for soured debt may curb dividend payouts
This article is for subscribers only.
More than a decade of profit gains at China’s largest banks probably came to an end last year, and the pain may deepen in 2016 as a surge in bad loans threatens their ability to maintain dividends.
Combined net income at Industrial & Commercial Bank of China Ltd. and its four closest rivals probably slipped 0.3 percent last year, according to analysts surveyed by Bloomberg ahead of earnings reports due next week. The group boosted profits by an average 25 percent between 2004 and 2014.