China’s Mega Banks Post Rare Profit Drops on Margin Squeeze
- Margins shrink as banks called on to dole out cheaper loans
- China’s mega banks are struggling to support the economy
An Agricultural Bank of China branch in Shanghai.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Industrial & Commercial Bank of China Ltd., the nation’s largest lender, reported its first decline in quarterly profit in more than a year as margins continue to contract.
Net income fell 2.78% to 87.7 billion yuan ($12.1 billion) in the first quarter, the Beijing-based bank said in an exchange filing on Monday. Its net interest margin narrowed to 1.48% from 1.61% at the end of 2023.