China's big four banks post solid Q3 results

China's big four state-owned banks on Monday reported profit growth across the board in the third quarter, after President Xi Jinping emphasised the importance of the public sector earlier this month. Net income at the four banks -- Industrial and Commercial Bank of China (ICBC), Bank of China (BOC), China Construction Bank (CCB), and Agricultural Bank of China -- all grew in the low single digits for July-September year-on-year, according to filings with the Hong Kong Stock Exchange. ICBC, the world's largest bank by assets, reported a net profit of 75.0 billion yuan ($11.3 billion) for Q3, up 3.35 percent year-on-year. The Bank of China's quarterly results were hurt by impairment charges and it reported the lowest net profit growth of the four, up just 0.10 percent year-on-year to 41.82 billion yuan (6.29 billion). China Construction Bank's net profit rose to 62.9 billion yuan ($9.46 billion) for the quarter, up 4.1 percent year-on-year. The Agricultural Bank of China's net profit rose to 51.42 billion yuan ($7.74 billion), up 4.89 percent. Lending income at CCB, BOC and ICBC all grew more than 10 percent for July-September compared to the same period last year. BOC led the pack, with growth of lending income for Q3 up 15 percent. "This quarter represents the banks' efforts to boost results to complete full-year targets," Hao Hong, chief strategist and head of research at Bocom International Holdings Co. in Hong Kong, told Bloomberg News. "Banks are loosening credit despite all the talk about deleveraging." The Bank of China was the only one of the big four banks to see its non-performing loan ratio tick upwards for the quarter, rising to 1.41 percent at the end of September, from 1.38 percent at the end of June. The ratio is a focus for analysts worried about the rapid rise of debt in the Chinese economy. The Agricultural Bank of China has the highest non-performing loan ratio of the four banks, standing at 1.97 percent at the end of the third quarter, down 0.4 percentage points compared to the end of 2016. The Agricultural Bank of China, ICBC and Bank of China published their earning reports on Monday, while China Construction Bank released its results last week.