Date
22 July 2017
PwC China financial services partner Zhu Yu said Chinese lenders expect a rise in non-performing loan ratio. Photo: HKEJ
PwC China financial services partner Zhu Yu said Chinese lenders expect a rise in non-performing loan ratio. Photo: HKEJ

Chinese lenders bearish on profit growth, PwC survey shows

About 60 percent of Chinese bankers believe the growth rate in revenue and earnings of lenders will be lower than 10 percent in the next three years, a survey showed.

Meanwhile, those who foresee a bad-debt rate of 1 to 3 percent during the period rose to 40 percent, compared with 30 percent in 2014, the Hong Kong Economic Journal reported on Tuesday, citing a survey jointly conducted by PricewaterhouseCoopers and the China Banking Association.

Those expecting a bad-debt ratio below 1 percent dropped 10 percentage points to 50 percent, the survey showed.

As of the end of September last year, the non-performing loan ratio of commercial lenders stood at 1.59 percent, data from the China Banking Regulatory Commission showed.

Taking into account all write-downs, the ratio would be at about 2 percent, PwC’s China financial services partner Zhu Yu said.

The survey also found that 52.5 percent of Chinese lenders see room for improvement in internal control.

[Chinese version中文版]

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