The Bank of China announced its biggest profit increase in nearly a decade last year, as lending momentum recovered in the second year of the pandemic and the accumulation of bad loans slowed.
Net profit rose 12.3% year-on-year to 216.6 billion yuan ($ 34 billion) in 2021, the bank said.
Estimates spoke of 209.8 billion yuan, marking the fastest profit growth since 2013.
The results come after Bank of Communications last week showed its strongest annual results in 10 years.
The other major Chinese banks, such as China Construction Bank, will announce later today and the Industrial & Commercial Bank of China and Agricultural Bank of China will announce their earnings on Wednesday.
The banking sector of 54 trillion. Dollar is reviving after the move of the authorities to stabilize economic growth and loosen restrictions on loans.
But challenges are mounting as the debt crisis affects the country’s real estate market and as rising coronavirus cases threaten to hit the momentum in the world’s second-largest economy.
Bank of China non-performing loans fell 0.13 points to 1.33%, while non-performing loans in the real estate sector rose 4.7 billion yuan to 34.7 billion yuan.
Source: Capital
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