Big Five lenders post shrinking margins
Lenders net profit results diverge
NPL ratios mostly flat

BEIJINGSHANGHAI, April 29 Reuters Margins at China39;s Big Five lenders shrank during the first quarter as banks came under pressure to support cashstarved property developers while loan demand remained weak.

Agricultural Bank of China Ltd39;s AgBank net interest margin NIM contracted to 1.44 at the end of March from 1.6 at Dec. 31, while that of the country39;s largest lender Industrial and Commercial Bank of China Ltd ICBC fell to 1.48 from 1.61.

At Bank of China BoC, the NIM narrowed to 1.44 from 1.59 at end2023, while China Construction Bank Corp CCB said its dropped to 1.57 from 1.7 and pointed to a Chinese economy still confronted by challenges such as inadequate effective demand.

China39;s Bank of Communications Co Ltd BoCom, also posted a narrower net interest margin on Friday.

ICBC, BoC and CCB all posted drops in first quarter net profit of more than 2 compared with the first three months of 2023, while AgBank recorded a 1.63 drop. BoCom bucked the trend with a 1.44 increase in first quarter net profit.

All five lenders posted flat or slightly improved nonperforming loan ratios at the end of March compared with the end of December.

However, smaller banks will lag on their sour debt ratios, SP said in a note this month.

Shortterm obstacles to the banking sector during this transition include a prolonged property downcycle. Smaller banks could be…