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China’s Mega Banks Extend Profit Gains on Easing Bad Loans

  • Lenders delivered profit growth of 11% to 16% in third quarter
  • Banks saw non-performing loan ratios drop from end of 2020
Shanghai City Skyline On New Year's Day

Photographer: Li Andong/VCG via Getty Images

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China’s biggest state-run banks extended their earnings recovery in the third quarter, fueled by rising credit demand and improving asset quality even as turmoil mounts in the nation’s sprawling real estate market. 

The world’s biggest bank by assets, Industrial & Commercial Bank of China Ltd., on Friday reported net income rose by 11% in the third quarter, according to a filing. Bank of China Ltd., Agricultural Bank of China Ltd., and China Construction Bank Corp. delivered gains of 13% to 16%. All lenders saw a decline in their non-performing loan ratios from the end of last year.