The profitability of Chinese banks is...>

CHINA PRESS: The profitability of Chinese banks is expected to improve next year

due to higher interest margins and lower credit costs, the Financial News, a

journal run by the People's Bank of China, reported Monday. Net profits of

listed banks are predicted to rise 6.61% year-on-year in 2018, compared with

4.3% growth this year, the report said, quoting industry insiders. Money market

rates will continue to rise as liquidity is tighten further under pressure from

financial deleveraging and stricter regulation, so the interest margins of big

banks will increase further, the report noted. Credit costs will decline as

non-performing loans are resolved. Bank provisions are growing, providing

support for managing their NPLs, the report argued. But banks will also face

bigger structural adjustment challenges as additional operating risks are

exposed next year. (Financial News)