ICBC, China’s Largest Bank, Suffers Unexpected Profit Drop
Industrial & Commercial Bank of China is the largest in China, but recently, this bank is facing some unexpected profit drop, ICBC said its profit in the third quarter fell 0.2% to 72.6 billion yuan ($10.7 billion) from a year earlier. The last situation like this happened in the end of June of last year.
But ICBC also as the world’s largest bank by assets didn't give any explanation for this decline, instead they are focusing in the 0.46% increase in its profit for the first nine months. But sadly other Chinese lenders are facing a trend of falling profitability too. Additionally their bad loans number is increasing, it rises 22% from last year totaled 208.88 billion yuan which is $30.8 billion. ICBC had already made up plans for it, it has been setting aside the lowest levels of cash reserves to buffer against bad loans. But it is a risk approach than other Chinese banks.