SHANGHAI/HONG KONG — Bad loans ticked up, interest margins shrunk and consumer loans were stagnant at China’s biggest state-owned banks in 2024, underscoring mounting challenges facing the financial sector as the government readies a 500 billion yuan ($69 billion) capital injection.
Executives at China’s “big four” state lenders — Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China and Bank of China — said net interest margins (NIMs) will continue to come under strain this year as the central bank plans further rate cuts to battle deflationary pressure.
