20 August 2019

Agricultural Bank warns of souring loans as growth slows

Agricultural Bank of China Ltd. (1288.HK) said Tuesday that its bad loans may rise this year as the country’s economic growth slows.

However, it said it will have enough provisions to contain risk from non-performing loans which are expected to “increase by a small magnitude”, chief risk officer Song Xianping told a Hong Kong media briefing.

Meanwhile, Song said rising default risks on trust products have a silver lining because these will force banks to exercise more caution in credit management and investment.

Agricultural Bank is planning to issue preferred shares to better meet Basel III capital rules in the long run, vice president Li Zhenjiang said.

Also, the bank is preparing to launch interbank certificates of deposits (CDs) this year, as well as retail CDs, pending regulatory approval, said Liu Qiang, general manager for assets and liability management.

– Contact the reporter at [email protected]



EJI Weekly Newsletter

Please click here to unsubscribe