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Xinhua: Banks Saw Concentrated Outbreak of Nonperforming Loans

Xinhua recently reported on the first quarter financial reports that multiple major banks released on May 1. The report indicated that the net profit growth rates of the top five Chinese commercial banks all fell into the "realm of one percent.” As the Chinese macro economy slows, the whole banking industry has been dealing with many challenges. In the first quarter, the top five banks saw their nonperforming loans double on a year-over-year basis. According to senior experts at PricewaterhouseCoopers (PwC), more and more overdue loans are in the process of becoming nonperforming loans. PwC recently published a new report which predicted that most banks would post end-of-year-reports for 2015 showing only single-digit growth and that some would even see negative growth. The total of the nonperforming loans is still rising. In the meantime, the risk resulting from the lower quality of credit based assets is continuing to growing.
Source: Xinhua, May 1, 2015