China's commercial banks to see net profit up 10% in H1: report

BEIJING - China's commercial banks are expected to see their net profit increase by nearly 10 percent in the first half of 2022 amid the country's economic growth and improvement of business environment, according to a report by the Bank of China (BOC).

In the relevant report on the economic and financial outlook for the second quarter, the BOC Research Institute noted that the banking industry will maintain growth momentum in the first half of this year, with its assets and liabilities up around 8.5 percent year-on-year.

Commercial banks' asset quality will continue to improve, the report said, expecting the non-performing loan ratio to decline to around 1.72 percent, and the non-performing loan balance to see a small increase.

In 2022, credit support will focus on key areas of the real economy, with priorities given to the manufacturing sector, green industries, government-subsidized rental housing and elderly services, said the report.

Medium- and long-term lending for the manufacturing sector is expected to surge by more than 30 percent year-on-year, while that for the high-tech manufacturing industry will see faster growth, the report added.