Analysis of China’s Top 10 Listed Banks results for the 3rd quarter of 2013
Total net profit for the Top 10 Listed Banks was RMB 862.9 billion during first three quarter of 2013, a 13.04% increase compared to the same period of last year. While Top 10 Listed Banks’ net interest income growth slide to 9.06% for first three quarters, net fee & commission income growth remained over 20% compared to the same period of last year.
Total NPL balances of Top 10 Listed Banks of RMB amounted to 428.3 billion, representing a 3.88% increase from the end of June 2013, with NPL ratios increased by 0.01 ppts to 0.96% as of the end of September 2013. The new regulation continued to put pressure on banks' CAR.
Looking ahead, we expect that in the second half of 2013, the banking sector will face challenges in the following areas:1) Asset quality; 2) New capital requirements;3) Liquidity ;4) Regulations on inter-bank business; 5) New market entrants - private-owned banks; 6) Deeper financial reforms.
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