China’s Big Banks Face Tough Year After Posting Profit Gains
- Most banks posted profits for last year that beat estimates
- Bank management taking margin pressures ‘very seriously’
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China’s biggest state-owned banks warned of a tough 2023 as uncertain economic conditions may squeeze earnings after most delivered better-than-estimated profit growth for last year.
China’s tightly controlled $54 trillion banking industry was pushed to extend more credit in 2022 to help cushion the economy from a slowdown triggered by the nation’s strict pursuit of Covid zero, which helped lift profits last year even as margins narrowed.