Chinese Banks Report Slower Profit Growth for 2022

Chinese lenders reported slower net profit growth in 2022, reflecting a high base of comparison in 2021 and declining net interest margins, among other factors.

The aggregate net profit of China's commercial banks grew 5.4% in 2022, compared with 12.6% in 2021, according to a report Wednesday by the China Banking and Insurance Regulatory Commission.

Commercial banks’ net interest margins, the difference between the interest earned on loans and the interest paid out to depositors, declined to 1.91% in the fourth quarter from 1.97% in the first quarter of 2022 as banks lowered corporate financing costs to support the real economy.