Chinese lenders reported slower net profit growth in 2022, reflecting a high base of comparison in 2021 and declining net interest margins, among other factors.

The aggregate net profit of China's commercial banks grew 5.4% in 2022, compared with 12.6% in 2021, according to a report Wednesday by the China Banking and Insurance Regulatory Commission.

Commercial banks' net interest margins, the difference between the interest earned on loans and the interest paid out to depositors, declined to 1.91% in the fourth quarter from 1.97% in the first quarter of 2022 as banks lowered corporate financing costs to support the real economy.

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Outstanding loans to small businesses near 60 trillion yuan

Xinhua, February 15, 2023

Outstanding loans by Chinese banks to small and micro businesses stood at 59.7 trillion yuan (8.76 trillion U.S. dollars) at the end of 2022, data from the country's top banking regulator showed Wednesday.

Non-performing loans of commercial banks amounted to 3 trillion yuan at the end of December, down 8.3 billion yuan from the previous quarter, according to the China Banking and Insurance Regulatory Commission.

The non-performing loan ratio of commercial banks was 1.63 percent at the end of December, down 0.02 percentage points from the end of September.

Total assets of Chinese banking institutions in local and foreign currencies amounted to 379.4 trillion yuan at the end of last year, up 10 percent year on year.