CBIRC Releases Supervisory Statistics of the Banking and Insurance Sectors for 2020 Q2


Aug. 10 -- China Banking and Insurance Regulatory Commission issued the following news release:

Banking and insurance assets increased steadily. As of the end of 2020 Q2, the total RMB and foreign currency assets of China’s banking institutions at home and abroad reached RMB 309.4 trillion, up by 9.7% year on year. Among those, assets of large commercial banks registered RMB 126.0 trillion, accounting for 40.7% of the total, and up by 10.1% year on year. Assets of the joint-stock commercial banks reached RMB 55.7 trillion, accounting for 18.0% of the total, and up by 11.8% year on year.

At the end of the first half of 2020, total assets of the insurance companies amounted to RMB 22.0 trillion. It increased by RMB 1.4 trillion and up by 6.9% from the beginning of the year. Compared with the beginning of the year, assets of property and casualty insurance companies registered RMB 2.4 trillion, up by 5.3%;;assets of life insurance companies reached RMB 18.6 trillion, up by 9.6%; assets of reinsurance companies recorded RMB 513.3 billion, up by 20.5%; assets of insurance asset management companies were RMB 64.3 billion, up by 0.5%.

The banking and insurance sectors continued to strengthen financial services. As of the end of 2020 Q2, the outstanding balance of loans to MSEs (including MSE loans, individual business owner loans and MSE owner loans) reached RMB 40.7 trillion. The outstanding balance of loans to MSEs for inclusive financing purpose with single account credit amount not exceeding RMB 10 million reached RMB 13.7 trillion, up by 17.7% from the beginning of the year. Loans to government-subsidized housing projects reached RMB 6.6 trillion, up by 2.7% year on year.

During the first half of 2020, insurance companies had recorded primary insurance premium income of RMB 2.7 trillion, up by 6.5% year on year. The claim and benefit payments reached RMB 630.8 billion, up by 1.2% year on year. The volume of insurance policies grew at a rapid pace. In the first half of 2020, the number of new insurance policies was by 23.9 billion, up by 28.0% year on year.

Quality of credit assets of commercial banks is basically stable. As of the end of 2020 Q2, outstanding balance of NPLs of commercial banks was RMB 2.74 trillion, up by RMB124.3 billion compared with last quarter. The NPL ratio of commercial banks was 1.94%, an increase of 0.03 percentage point compared with the previous quarter.

As of the end of 2020 Q2, outstanding balance of performing loans of commercial banks was RMB 138 trillion, among which, the balance of loans listed as “normal” (performing) was RMB 134 trillion and the balance of special-mentioned loans was RMB 3.9 trillion.

Profit of commercial banks decreased year on year and risk resilience remained strong. In the first half of 2020, commercial banks had accumulated a net profit of RMB 1.0 trillion, down by 9.4% year on year. The average ROE was 10.35%. The average ROA of commercial banks was 0.83%. Compared with the end of last quarter, it decreased by 0.15 percentage points.

As of the end of 2020 Q2, the balance of loan loss provisions of commercial banks reached RMB 5.0 trillion, which increased by RMB 206.0 billion compared with the previous quarter. The provision coverage ratio was 182.4%, down by 0.80 percentage points compared with the end of last quarter. The loan provision ratio was 3.54%, up by 0.04 percentage points compared with the end of last quarter.

As of the end of 2020 Q2, the core tier 1 capital adequacy ratio (CAR) of commercial banks (excluding branches of foreign banks) was 10.47%, down by 0.41 percentage points compared with the end of last quarter; tier 1 CAR was 11.61%, down by 0.34 percentage points and CAR was 14.21%, down by 0.31 percentage point compared with the end of last quarter.

Liquidity remained sound. As of the end of 2020 Q2, the liquidity coverage ratio of commercial banks was 142.46%, down by 9.08 percentage points compared with the end of last quarter; liquidity ratio was 58.19%, down by 0.38 percentage points compared with the end of last quarter; RMB excess reserve ratio was 1.90%, down by 0.61percentage points compared with the end of last quarter; and the loan-to-deposit ratio (loans and deposits denominated in RMB and extended domestically) was 74.60%, down by 0.33 percentage points compared with the end of last quarter.

Source: China Banking and Insurance Regulatory Commission

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