Slower Profits Seen for China Banks
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A file dated 08 December 2011 shows an exterior view of the offices of Fitch Ratings in New York, New York, USA. [File Photo: ImagineChina]

Ratings agency Fitch has issued new analysis, suggesting major Chinese banks are likely to show subdued earnings growth for this past year.

Stats from the China Banking Regulatory Commission show net the profits in China's banking sector grew by only 2.4 percent last year.

This is a significant drop from the 9.6 percent year-on-year growth recorded in 2014.

Fitch says it estimates the financial statements of China's major banks — to be released next week — will confirm the slower profit growth.

The ratings agency also says it expects the numbers to decline even further this year unless the authorities relax the rules surrounding non-performing loan holdings.

Right now, commercial banks in China have around 350-billion US dollars held up to cover non-performing loans.

Fitch is recommending some of that money be freed up.

However, the non-performing loan ratio in China jumped to 1.67-percent last year from 1.25-percent in 2014.

Author： 　　　Source：CRI　　　 Editor：Yang Fan