China Industrial and Commercial Bank China Limited’s profits fell in the first quarter as pressure to lower interest rates on the largest lenders in the United States.
Net income fell 3.99% to RMB 84.2 billion in China’s largest banks, according to documents filed on Tuesday. The decline in China’s construction bank companies fell similarly, while the profit margins of Agricultural Bank of China and Communications Corporation were small. Starting from the end of 2024, the profit margin will be signed by all banks.
As China deepens controversy over trade with the United States, the results provide a pulse check on the lenders in the largest state in the United States. Beijing policymakers have vowed to “fully prepare” emergency plans to deal with increased external shocks, including the creation of new structural monetary policy tools and policy-based financial tools.
Early stimulus boosted economic growth, including cutting major and mortgage rates, caused losses to banks. The sector’s margins have been recorded to the narrowest, and further profits may be raised after the central bank governor reiterated the earlier implementation of moderately loose monetary policy.
Francis Chan, a Bloomberg intelligence analyst led by Francis Chan, wrote in a statement last week that the U.S. sell-tax rate could hit China’s GDP by 2.5% to 3%, prompting Chinese lenders to make profits bigger and exacerbate margins.
The four major lenders led by ICBC have squeezed margins of 14 to 18 basis points this year, adding that the decline in the consensus could be as high as 14 basis points.
Nevertheless, China is still working to provide state lenders with capital buffers to better serve the world’s second largest economy. It began selling special sovereign bonds on Thursday, including RMB 165 billion in notes to fund the bank’s capital. A total of 500 billion yuan of such bonds will be issued on June 4.
This article was generated from the Automation News Agency feed without the text being modified.
