People wait outside a Bank of China branch in Beijing on July 11, 2014.
GREG BAKER | AFP | Getty Images
Banks in China are likely to record greater declines in profits in the second half of this year as bad loans are set to rise further as a result of the coronavirus pandemic, according to Fitch Ratings.
In January to June this year, the net profit of Chinese banks fell 9.4% to around 1 trillion yuan ($146.2 billion), compared with the first half of 2019 on lower margins and higher expected loan losses, the ratings agency said in a Wednesday report. The five Chinese mega banks reported at least 10% year-on-year fall in profit — their biggest earnings declines in at least a decade.