Agricultural Bank of China's Revenue Shrank for the First Time on Low Interest Charges
Yicai Global
/SOURCE : Yicai
Agricultural Bank of China's Revenue Shrank for the First Time on Low Interest Charges

(Yicai Global) Aug. 29 -- First-half revenue at the Agricultural Bank of China Ltd. [SHA:601288], one of China's four major state-owned commercial banks, shrank for the first time since listing in 2010 due to a drop in income from interest charges.

The lender's income shrank 5 percent from the same period last year to CNY262.5 billion (USD39.3 billion) and net profit only nudged up 0.8 percent, according to the bank's interim report.

The bank's net income from interest charges fell 9.4 percent in the first half to CNY198.96 billion and its income from interest on corporate loans slumped 18 percent to CNY28.71 billion.

ABC is the only bank to see shrinking first-half revenue of all the banks that have released their semi-annual reports so far.

Meanwhile, both ABC's non-performing loan ratio and bad loan balance kept rising. It had a non-performing loans ratio of 2.4 percent by the end of June, amounting to CNY225.39 billion. In the wholesale and retailing industries its bad loan ratio reached 13.88 percent, up 1.5 percentage points from the beginning of the year.

Loans to the wholesale and retailing industries only accounted for 8.4 percent of the bank's corporate loans, but made up 34.4 percent of non-performing loans, with a balance of CNY64.18 billion. The non-performing loan ratio in the manufacturing industry was also high at 5.93 percent and exceeding a value of CNY80 billion.

 

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