Abstract

We are pleased to present our Banking Newsletter, PwC’s analysis of China’s Listed Banks and the wider industry, which is now in its 23rd edition. Since the end of 2014 the analysis covers 13 large listed banks (we refer to them as the “Major Listed Banks”) that are defined by the China Banking Regulatory Commission (CBRC) as Large Commercial Banks and Joint-stock Commercial Banks. The total assets of the Major Listed Banks by the end of 1Q 2015 accounted for 76.44% of the assets of China banking sector. 

Since 2014, the net profit growth of Major Listed Banks has entered a “single-digit” growth era. This trend was more obvious in 1Q 2015 and especially for Large Commercial Banks. The Major Listed Banks’ credit asset quality continued to deteriorate in 1Q 2015, with non-performing loan (NPL) balance increasing and NPL ratios on the rise. NPL ratios on the rise was due to: the slowdown of macro economy, falling price in property markets, the poor operation conditions of small and medium-sized enterprises (SMEs), and the over-capacity in some industries. 

As the asset quality of Major Listed Banks deteriorates, more pressure fall upon their provision level. For a detailed analysis of Major Listed Banks' results please download the read the report. 

Contents

1. Macro Overview 

2. Analysis of Operating Performance 

3. Analysis of Financial Position 

4. Analysis of Capital Management 

5. Appendix