China's Mega Banks Record Double-Digit Fall in Profits in First Half of 2020 Amid Pandemic

MOSCOW (Pakistan Point News / Sputnik - 31st August, 2020) Four of China's largest banks in terms of assets have registered a double-digit percentage fall in profits in the first half of 2020 compared to the previous year amid the ongoing COVID-19 pandemic, according to fresh financial reports.

Industrial & Commercial Bank of China Ltd., the world's largest lender in terms of assets, saw its net profit fall by 11.4 percent to 148.8 billion Yuan ($21.7 billion) in the first half of 2020, according to an interim report published on Sunday.

China Construction Bank Corp., Agricultural Bank of China Ltd., and Bank of China Ltd. all posted a drop in profits ranging from 10.

3 percent to 11.5 percent compared to the same period in 2019.

The fall in profits comes as Chinese banks have stepped up their provisions against bad debt as the ongoing COVID-19 outbreak continues to disrupt business activity.

In June, the Chinese State Council urged the country's lenders to forgo 1.5 trillion yuan ($219.1 billion) in profit to finance cheap loans, reduce banking fees, and defer loan repayments to help small businesses survive the ongoing economic disruption caused by the pandemic.

China's GDP shrank by 1.6 percent year-on-year in the first half of 2020, according to a July report by the National Bureau of Statistics.