Bank of China Maintains Stability in Q3 Amid Economic Headwinds
Bank of China reported a steady ¥60.1 billion profit in Q3, mirroring its June performance with unchanged net interest margins (1.26%) and non-performing loan ratios. The results reflect broader trends among state-owned banks navigating China's economic slowdown and escalating trade tensions with the US.
Weak loan demand persists as a systemic pressure point. New yuan loans to the real economy dropped ¥851 billion YoY in the first nine months, coinciding with China's slowest quarterly GDP growth in a year. Commercial banks' collective H1 profits fell 1.2% to ¥1.24 trillion while non-performing loans climbed to ¥3.4 trillion.
Beijing's focus remains on stabilizing growth through its upcoming five-year plan, emphasizing domestic consumption stimulation. The banking sector's asset quality and profitability metrics are under particular scrutiny as lending activity—a traditional economic lever—shows muted traction.
