Chinese Bank Stocks Fall After Weak First-Quarter Results

Dow Jones Newswires

By Sherry Qin

Chinese banks stocks fell after weak first-quarter results that come as U.S.-China tensions fuel concerns about the financial sector's health.

Shares of China's biggest lenders slid on Wednesday as earnings released after market close on Tuesday showed broad profit declines and squeezed net interest margins.

In Hong Kong, Industrial & Commercial Bank of China dropped 4.2% while China Merchants Bank was 5.1% lower. Agricultural Bank of China shed 3.1% and China Construction Bank was off by 3.3%. The sector was the biggest laggard in afternoon trade, weighing on the Hang Seng Index, which edged up 0.2%.

In Shanghai, ICBC and Bank of China were down 3.7% and 3.0%, respectively.

China's state-owned lenders kicked off 2025 on a weak note as lower lending rates continue to exert downward pressure on margins.

Big banks like ICBC have been lowering lending rates in recent quarters as Chinese policymakers take steps to bolster consumer confidence and support a weak property market. Loan repricings and declining corporate loan yields weighed on banks' earnings in the first three months of the year.

ICBC, the world's largest bank by assets, reported a worse-than-expected 4% fall in net profit in the first quarter amid declines in interest income and fee & commission income.

A rise in non-performing retail loans, especially the asset-quality deterioration of micro and small enterprise loans, also limited banks' room to reduce impairment charges, UBS head of Asia financials research May Yan said in a note.

If policymakers opt to cut rates further, as widely expected in the face of the economic hit from U.S. tariffs, Chinese lenders may feel even more of a pinch.

Purchasing managers index data for April released earlier signaled that the U.S.'s 145% tariffs on China are starting to inflict pain on the economy, with new export orders falling and manufacturing activity shrinking.

Although Chinese banks don't have a big exposure to export-oriented businesses, UBS's Yan thinks they could face "more sizeable" indirect impacts that are difficult to quantify at this stage.

Write to Sherry Qin at sherry.qin@wsj.com

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

Bank of China's Q1 Attributable Profit Slips 3%; Shanghai Shares Up 3%

MT Newswires

601988

-2.10%

Bank of China attributable profit fell 2.9% to 54.4 billion yuan in the first quarter from about 56.0 billion yuan in the year-ago period, according to a Tuesday filing with the Hong Kong bourse.

Earnings per share at the bank stayed flat year on year at 0.18 yuan.

Net interest income slipped to 107.7 billion yuan from 112.7 billion yuan in the prior-year period.

Shares jumped 3% in Shanghai during recent trade.

Risk Warnings and Disclaimers

Add to Favorites

Bank of China's Q1 Attributable Profit Slips 3%; Shanghai Shares Up 3%

MT Newswires

601988

-2.10%

Bank of China attributable profit fell 2.9% to 54.4 billion yuan in the first quarter from about 56.0 billion yuan in the year-ago period, according to a Tuesday filing with the Hong Kong bourse.

Earnings per share at the bank stayed flat year on year at 0.18 yuan.

Net interest income slipped to 107.7 billion yuan from 112.7 billion yuan in the prior-year period.

Shares jumped 3% in Shanghai during recent trade.

Risk Warnings and Disclaimers

Add to Favorites

AgBank Q1 Profit Up 2%; Shares Slide 4%

MT Newswires

601288

-2.65%

Agricultural Bank of China posted first-quarter net profit attributable to shareholders of 71.9 billion yuan, up 2.2% from 70.4 billion yuan the previous year.

Earnings per share stood at 0.19 yuan, unchanged from last year, according to a filing with the Hong Kong bourse.

The bank's operating income inched up 0.3% year over year to 186.7 billion yuan from 186.1 billion yuan.

Shares of AgBank were down 4% on the Shanghai and Hong Kong bourses.

Risk Warnings and Disclaimers

Add to Favorites

AgBank Q1 Profit Up 2%; Shares Slide 4%

MT Newswires

601288

-2.65%

Agricultural Bank of China posted first-quarter net profit attributable to shareholders of 71.9 billion yuan, up 2.2% from 70.4 billion yuan the previous year.

Earnings per share stood at 0.19 yuan, unchanged from last year, according to a filing with the Hong Kong bourse.

The bank's operating income inched up 0.3% year over year to 186.7 billion yuan from 186.1 billion yuan.

Shares of AgBank were down 4% on the Shanghai and Hong Kong bourses.

Risk Warnings and Disclaimers

Add to Favorites

Industrial and Commercial Bank of China Q1 Profit Down 4%, Revenue Slips 3%

MT Newswires

601398

-0.38%

Industrial and Commercial Bank of China posted first-quarter net profit attributable to shareholders of 84.2 billion yuan, down 4.0% from 87.7 billion yuan the previous year.

Earnings per share slid to 0.23 yuan from 0.24 yuan, according to a filing with the Hong Kong bourse.

The bank's revenue was down 2.6% to 204.7 billion yuan from 210.2 billion yuan.

Shares of ICBC were down 3% in recent trade on the Shanghai bourse and 5% on the Hong Kong bourse.

Risk Warnings and Disclaimers

Add to Favorites

Agricultural Bank of China: Q1 2025 net profit up 1.80% year-over-year; assets and loans grew, but net interest income fell

Quartr

Net profit for Q1 2025 rose 1.80% year-over-year to RMB72,116 million, with total assets up 3.66% and loans up 5.14%. Net interest income and fee income declined, while credit impairment losses increased. Capital adequacy and liquidity ratios remained strong.

Original document: Agricultural Bank of China Limited Class A [601288] Earnings Release — Apr. 29 2025

Disclaimer

This is an AI-generated summary and may contain inaccuracies. Please verify any important information with the original source.

Risk Warnings and Disclaimers

Add to Favorites

Risk Disclosure

The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.

Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.

Recent Searches

Top Searches

Markets

News

Analysis

User

24/7

Economic Calendar

Education

Data

Chinese Bank Stocks Fall After Weak First-Quarter Results

Bank of China's Q1 Attributable Profit Slips 3%; Shanghai Shares Up 3%

Bank of China's Q1 Attributable Profit Slips 3%; Shanghai Shares Up 3%

AgBank Q1 Profit Up 2%; Shares Slide 4%

AgBank Q1 Profit Up 2%; Shares Slide 4%

Industrial and Commercial Bank of China Q1 Profit Down 4%, Revenue Slips 3%

Agricultural Bank of China: Q1 2025 net profit up 1.80% year-over-year; assets and loans grew, but net interest income fell

Risk Disclosure