Shanghai Pudong Development Bank Writes Off USD974 Million to Accelerate Bad Assets Disposal
Yicai Global
/SOURCE : Yicai
Shanghai Pudong Development Bank Writes Off USD974 Million to Accelerate Bad Assets Disposal

(Yicai Global) Sept. 29 -- As non-performing loans increase, Chinese banks have speeded up the process of disposing of bad assets. Among them, Shanghai Pudong Development Bank Co. [SHE:600000] said its board has approved the write-off of CNY6.5 billion in assets.

The bank's non-performing loans stood at CNY40.37 billion at the end of the first half of the year, up CNY5.28 billion from the end of last year, its interim report shows. Their non-performing loan ratio was 1.65 percent, up 0.09 percentage points from the end of last year. The bank will continue to pursue its creditor's claim after writing off the assets, it said in an announcement.

Non-performing loans at 29 listed banks that had disclosed their bad loans reached CNY1.13 trillion at the end of June, up 10.06 percent from the end of last year, according to figures from PricewaterhouseCoopers.

PWC believes non-performing loans will continue to grow in the Chinese banking sector in the first half. More than CNY100 billion of bad loans at banks were written off in the first half. The non-performing loan ratio could climb to 2 percent in the absence of massive write-off or disposal of bad assets in the second half of the year.

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