Bigger rival Industrial & Commercial Bank of China Ltd. saw its bad loans from residential mortgages rise 9.6% to 27.8 billion yuan, according to a Wednesday filing. In the corporate loan segment, its property non-performing loan ratio was the highest among all sectors. Agricultural Bank of China Ltd. reported a 4.7% increase in soured residential mortgage loans last year, while NPL ratio for the property sector also topped other industries.
China’s protracted property downturn is eroding the balance sheets of the nation’s largest state banks as their bad loans creep up.
Bank of Communications Co. reported Wednesday that its property bad loan ratio jumped to 4.99% at the end of last year from 2.8% a year earlier. While the balance of its overdue mortgages slipped, the special mention loans for the segment — a leading indicator of soured loans — jumped 23% to 9.88 billion yuan ($1.88 billion).
