BCN-19 China banks post profits but warn of instability

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ZCZC

BCN-19

CHINA-EARNINGS-BANKING

China banks post profits but warn of instability

BEIJING, March 30, 2019 (BSS/AFP) – Chinese banks have posted profits for
2018 but warned that domestic and global uncertainties could put downward
pressure on the sector in the coming year.

Bank of China (BOC) posted a profit of 192.44 billion yuan ($28.67
billion), up four percent from the previous year, which the company credited
to a stable economy and “prudent monetary policy” from the Chinese
government.

But the sector “will face a complicated operating environment in 2019”, BOC
said in its annual report filed to the Hong Kong Stock Exchange late Friday.

“The growth drivers of the global economy will weaken, international
financial markets will remain at risk of fluctuation, and the functioning of
the economy will be subject to a number of uncertainties.”

The Industrial & Commercial Bank of China (ICBC) — the country’s largest
bank — posted a net profit of 297.68 billion yuan in 2018, a 4.1 percent
increase.

China’s second largest lender by assets, China Construction Bank, posted a
net profit of 254.66 billion yuan for 2018, a gain of 5.11 percent.

The company credited the “steady growth” to, among other factors, the
central bank’s reserve requirement cut, in a filing on Thursday.

Beijing has been locked in a bruising trade war with Washington for most of
2018, rocking global markets.

Trade negotiators are seeking to iron out major differences over US
accusations that China has been using unfair trade practices for years by
heavily subsidising its companies while snatching the technological know-how
of American firms.

BSS/AFP/SR/1930 HRS