China's Big Five Banks Post Stable Results

China's Big Five Banks Post Stable Results
China's big five lenders each reported above 3.5% annual net-profit growth, but warned that the country’s recovery was notcomplete, citing continued global banking turmoil and domestic risks.
China's Bank of Communications Co Ltd (BoCom) and Bank of China (BoC) both posted above 5% annual net-profit growth. Agricultural Bank of China Ltd (AgBank) and China Construction Bank Corp both posted over 7% annual net-profit growth. Industrial and Commercial Bank of China (ICBC), the world's largest listed lender by assets, closed out the reporting with 3.5% annual net-profit growth.
Analysts noted that China’s domestic economy was making a stable recovery, but the work was not done, with continuing property-market challenges being a shared concern. Last year, China's property sector was shaken by successive developer bond and loan defaults, as policy measures to contain excessive leverage led to a housing cash crunch.
What does this mean for me?
Each of China’s big five banks made special note of global banking instability, while at the same time distancing themselves from overseas troubles. BoCom mentioned in its findings that it does not hold any Credit Suisse tier-1 bonds. All the banks said their exposure to overseas risks was limited while noting that continued Western market volatility would eventually increase risk levels.
This year, the global economic situation is promising to be complex and uncertain, with major economies under lingering risk of recession and emerging markets at the mercy of heightened volatility. However, investors interested in China’s economy will be encouraged by this week’s news.