Bank of Communications assets exceed 10 trln yuan  

Non-performing loans ratio increases but Chinese lender says the risks are ‘controllable’ even in face of coronavirus outbreak

by Nadeem Xu
Bank of Communications’ total assets exceeds 10 trln yuan  
Bank of Communications in China says its risks are “controllable”. Photo: Wikimedia

(ATF) The total assets of the Bank of Communications had reached 10.45 trillion yuan ($1.5trn) at the end of March, up 5.54% from the end of last year, according to its first quarter results released Tuesday.

Q1 net profit attributable to the parent company was 21.5 billion yuan, up 1.8%.

The group's net interest margin was 1.55%, down 4 basis points from the same period of last year, in the face of many unfavourable factors, such as rising credit risk amid the coronavirus outbreak, weak customer transactions and declining market interest rates brought about by the epidemic.

Its non-performing loan ratio was 1.6%, up 0.12 percentage points from the end of last year, but it said the risks were "basically controllable". In addition, the bank's domestic loan balance increased by 184.2bn yuan, an increase of 0.65.

Judging by the direction of loans, the bank’s business layout and national strategy have maintained the "same frequency resonance”, it said.

Loans in the Yangtze River Delta and the Guangdong, Hong Kong, Macau greater bay area, Beijing, Tianjin and Hebei have increased by 165.3 billion yuan, 2.02 times over the same period last year.