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’

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.

Up Next
China’s Big Banks Face Tough Year After Posting Profit Gains