China's Biggest Banks Stand Exposed After Profit Buffers Eroded
- Profit outlooks depend on rules on loan-loss provisions
- Big-five banks to report first-quarter earnings this week
China's Banks May See Profit Fall
This article is for subscribers only.
China’s biggest banks stand exposed to their first annual profit declines in more than a decade.
That’s because lenders such as Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. have less room to smooth out their earnings after letting provision coverage for bad loans -- a key swing factor in earnings reports -- fall close to the regulatory minimum.