Unleashing hidden potential: on the road to recovery – China Banking Review 2023 1H

November 2023

In the first half of 2023, despite the complex and severe international environment, China‘s economy continued to recover and was generally stable. However, there are new difficulties and challenges such as insufficient domestic demand, operational difficulties for some enterprises and hidden risks in key sectors. The foundation for sustained economic recovery and development still needs to be solid. The banking industry, amongst all, faces these challenges directly and increase efforts to serve the real economy. For listed banks, the profit growth rate slowed down while the total assets maintained growth. The balances of non-performing loan (“NPL”) have shown an upward trend. However, the NPL ratio has dropped from the beginning of the year. The capital adequacy ratio (“CAR”) has shown an overall downward trend. The divergence in banks’ performances has become increasingly obvious.

This report analyses the half-year results of 58 A-share and/or H-share listed banks (see the list on the left for details) as of June 30, 2023. Unless otherwise specified, the banks listed in this publication are arranged according to their unaudited asset size as of June 30, 2023. Previous data are all compared with the same calibre. All data used sources from public information such as half-year reports of listed banks. The monetary amount used in this report is Renminbi Yuan (except for ratios).

For more information or to discuss the development of China’s banking industry with us, please contact your day-to-day business contact at PwC, or our financial services team listed in the appendix to this report.