China’s big banks post fastest quarterly profit growth in years as margins stabilise

China's five largest state-owned banks reported their fastest quarterly profit growth in years, driven by stabilising net interest margins (NIM) and steadier asset quality, despite a slowing economy. Industrial and Commercial Bank of China, the world's largest lender by assets, saw a 10% year-on-year increase in net profit, while Agricultural Bank of China, China Construction Bank, and Bank of Communications reported similar growth rates of 10.8%, 9.8%, and 10.1%, respectively.

While Bank of China experienced comparatively slower growth of 6.4% due to trade tensions and foreign exchange swings, the overall results suggest a recovery from years of squeezed profitability. Policymakers have stepped up targeted monetary support, which modestly improved credit demand, but analysts believe it will not significantly lift lending or mortgage growth.

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