China Construction Bank Shows Double Digit Gains

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April 28 (Bloomberg) –- Bloomberg’s Zeb Eckert reports on earnings for China Construction Bank and Agricultural Bank. He speaks to Angie Lau on Bloomberg Television’s “First Up.” (Source: Bloomberg)

Now, amid concerns about rising defaults, three of china's top four banks manage to boost profits.

Joining us now with the details.

Looking pretty good for ccb.

That's right.

Double digit profit gains in the quarter.

And this realy impressing some investors because of the problem of bad loans, rising bad loans continues to be a persistent challenge for all these lenders.

We know the shadow banking system key concern.

The government addressing this.

The people's bank of china with this crackdown under way as part of the wider financial reforms.

For the earnings, they've managed to hold up strong.

Agriculture bank reporting a 14% gain in net income, $8.5 billion.

It did report higher bad loans, a concern here.

Now, agricultural bank benefiting from the fact that it has a strong rural customer bank.

So perhaps a stablor source of income.

All of these are pushing into wealth management products which we reported on extensively.

They carry their own unique risk.

So that's a key variable going forward.

Just to give you a sense of how the bank did construction bank, reporting on friday a 10%, minting money at these chinese banks.

Is that enough to assauge concerns from investors or are there more risks on the horizon here?

Well, it depends who you ask.

If you ask the likes of charlene at fitch in beijing, she would say yes.

Others are a bit more optimistic on the chinese banking sector and looking specifically these days at valcombugses because they're at extremely low.

Because investors are scared.


And look at how the stocks have fallen year to date.

Agricultural bank has really seen the biggest decline of 16%. bank of china reported late last week down about 6% icbc

This text has been automatically generated. It may not be 100% accurate.


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