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Sept. 1, 2014, 1:27 a.m. EDT

China state banks report surge in soured loans

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By Grace Zhu


Shutterstock/pcruciatti

BEIJING — China’s biggest state-owned banks reported a surge in soured and castoff loans in the first half, as China’s slowing growth takes a toll on its lenders.

The five biggest state-owned banks — Industrial & Commercial Bank of China Ltd. /zigman2/quotes/201401473/delayed HK:1398 -2.42%   /zigman2/quotes/202525815/delayed CN:601398 +0.23%   /zigman2/quotes/204265987/composite IDCBF -6.88% , China Construction Bank Corp. /zigman2/quotes/208974133/delayed HK:939 -2.41%   /zigman2/quotes/208058581/delayed CN:601939 +0.72%   /zigman2/quotes/209484779/composite CICHF -1.65% , Agricultural Bank of China Ltd. /zigman2/quotes/200705246/delayed HK:1288 -1.68%   /zigman2/quotes/204629388/delayed CN:601288 +0.71%   /zigman2/quotes/209398792/composite ACGBF -3.31% , Bank of China Ltd. /zigman2/quotes/204682472/delayed HK:3988 -2.67%   /zigman2/quotes/209359942/delayed CN:601988 +0.66%   /zigman2/quotes/201568493/composite BACHY -1.27%  and Bank of Communications Co. /zigman2/quotes/203442771/delayed HK:3328 -2.39%   /zigman2/quotes/207155262/delayed CN:601328 +0.65%   /zigman2/quotes/208048873/composite BKFCF +2.25%  — wrote off and transferred out of their books a total of 46.91 billion yuan ($7.64 billion) of bad loans in the first half, according to calculations by The Wall Street Journal.

That is more than twice the 22.07 billion yuan from a year earlier and marks an effort to clean up their books amid the prospects of more bad loans.

The five lenders also reported a total of 423.49 billion yuan of nonperforming loans outstanding at the end of June, up 21% from a year earlier. They also reported a slowdown in profit growth.

Bad-loan levels within China’s banking industry remain low in terms of total portfolios. Still, the level is expected to creep upward as cooling economic growth hampers borrowers’ ability to repay debts.

An expanded version of this report appears on WSJ.com.

/zigman2/quotes/201401473/delayed
HK : Hong Kong
$ 3.63
-0.09 -2.42%
Volume: 298.85M
Sept. 28, 2022 4:08p
P/E Ratio
3.08
Dividend Yield
9.46%
Market Cap
$1605.92 billion
Rev. per Employee
$3.85M
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/zigman2/quotes/202525815/delayed
CN : China: Shanghai
¥ 4.35
+0.01 +0.23%
Volume: 180.58M
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P/E Ratio
4.35
Dividend Yield
6.74%
Market Cap
¥1464.57 billion
Rev. per Employee
¥3.30M
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/zigman2/quotes/204265987/composite
US : U.S.: OTC
$ 0.47
-0.03 -6.88%
Volume: 200.00
Sept. 28, 2022 2:42p
P/E Ratio
3.00
Dividend Yield
N/A
Market Cap
$209.06 billion
Rev. per Employee
$514,332
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/zigman2/quotes/208974133/delayed
HK : Hong Kong
$ 4.45
-0.11 -2.41%
Volume: 277.61M
Sept. 28, 2022 4:08p
P/E Ratio
2.96
Dividend Yield
9.57%
Market Cap
$1154.48 billion
Rev. per Employee
$4.63M
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/zigman2/quotes/208058581/delayed
CN : China: Shanghai
¥ 5.57
+0.04 +0.72%
Volume: 56.03M
Sept. 28, 2022 3:00p
P/E Ratio
4.52
Dividend Yield
6.54%
Market Cap
¥1052.86 billion
Rev. per Employee
¥3.64M
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/zigman2/quotes/209484779/composite
US : U.S.: OTC
$ 0.57
-0.0096 -1.65%
Volume: 532.00
Sept. 28, 2022 2:42p
P/E Ratio
2.97
Dividend Yield
N/A
Market Cap
$148.32 billion
Rev. per Employee
$563,869
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/zigman2/quotes/200705246/delayed
HK : Hong Kong
$ 2.34
-0.04 -1.68%
Volume: 109.91M
Sept. 28, 2022 4:08p
P/E Ratio
2.73
Dividend Yield
10.34%
Market Cap
$1063.82 billion
Rev. per Employee
$3.25M
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/zigman2/quotes/204629388/delayed
CN : China: Shanghai
¥ 2.85
+0.02 +0.71%
Volume: 251.21M
Sept. 28, 2022 3:00p
P/E Ratio
4.02
Dividend Yield
7.26%
Market Cap
¥970.18 billion
Rev. per Employee
¥2.61M
loading...
/zigman2/quotes/209398792/composite
US : U.S.: OTC
$ 0.30
-0.01 -3.31%
Volume: 2,500
Sept. 28, 2022 11:20a
P/E Ratio
2.73
Dividend Yield
N/A
Market Cap
$135.52 billion
Rev. per Employee
$406,847
loading...
/zigman2/quotes/204682472/delayed
HK : Hong Kong
$ 2.55
-0.07 -2.67%
Volume: 418.80M
Sept. 28, 2022 4:08p
P/E Ratio
2.78
Dividend Yield
10.15%
Market Cap
$923.90 billion
Rev. per Employee
$3.99M
loading...
/zigman2/quotes/209359942/delayed
CN : China: Shanghai
¥ 3.07
+0.02 +0.66%
Volume: 114.53M
Sept. 28, 2022 3:00p
P/E Ratio
4.04
Dividend Yield
7.20%
Market Cap
¥842.58 billion
Rev. per Employee
¥3.26M
loading...
/zigman2/quotes/201568493/composite
US : U.S.: OTC
$ 8.14
-0.11 -1.27%
Volume: 158,753
Sept. 28, 2022 2:54p
P/E Ratio
2.77
Dividend Yield
8.51%
Market Cap
$117.70 billion
Rev. per Employee
$504,356
loading...
/zigman2/quotes/203442771/delayed
HK : Hong Kong
$ 4.08
-0.10 -2.39%
Volume: 17.18M
Sept. 28, 2022 4:08p
P/E Ratio
2.79
Dividend Yield
10.20%
Market Cap
$343.90 billion
Rev. per Employee
$6.86M
loading...
/zigman2/quotes/207155262/delayed
CN : China: Shanghai
¥ 4.62
+0.03 +0.65%
Volume: 72.32M
Sept. 28, 2022 3:00p
P/E Ratio
3.92
Dividend Yield
7.68%
Market Cap
¥313.63 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208048873/composite
US : U.S.: OTC
$ 0.58
+0.01 +2.25%
Volume: 0.00
Sept. 14, 2022 11:57a
P/E Ratio
3.17
Dividend Yield
N/A
Market Cap
$45.73 billion
Rev. per Employee
N/A
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