At some Chinese banks, NPL growth outpaces allowances

Bank of Beijing, Bank of China, China Merchants Bank and Industrial Bank see bad loans climb faster than set-asides

Some of China’s top lenders saw non-performing loans (NPLs) climb faster than loss allowances in the first half of the year – a potential sign of trouble as the country navigates its most serious economic slowdown in decades.

Bank of Beijing’s NPLs climbed 21% between January and June, far steeper than the 12% rise in total impairment allowances. Similarly, Industrial Bank’s NPLs rose more than twice as fast as allowances in the first half – 13% against 6%.

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