Analysis of China listed banks' results for the third quarter of 2015
In the first three quarters of 2015, world economies recovered slowly at different rates and in varied forms, with China continues to find its bottom. Against this backdrop, the Listed Banks' total net profit for the first three quarters of 2015 amounted to RMB 1,050 bn. This is a moderate increase of 2.26% compared to 10.02% for the same period in 2014.
At the end of Q3, total NPLs of the Listed Banks amounted to RMB 911.58 bn, up 6.91% from the end of Q2; the NPL ratio rose 0.07% to 1.51% QoQ. NPLs continued to increase both in terms of balance and ratio.
Due to the continued rise of credit exposures and the manifest slowdown in profit growth, internal forces are less able to drive the capital adequacy of these listed commercial banks. Supplementary capital instruments, including preferred stock, tier-2 capital bonds and follow-on offerings of common stock, are expected to become the norm when listed commercial banks opt to top up their capital.
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