Economic growth may have slowed in China in 2012, but the country's banking sector still managed to show improved profitability, with the five largest public sector banks reported to have recorded a more than 11% increase in net profits to a combined Rmb750bn ($120.7bn). On top of this, the average non-performing loan (NPL) ratio at these banks was down to 0.99% in 2012, a 0.1% decrease from 2011. NPL provisions at the banks are sufficient to cover 300% of estimated NPLs.
Chinese economic growth was down to 7.8%, but China’s biggest bank, Industrial and Commercial Bank of China (ICBC), saw its profit before tax increase 13.55% to $49.5bn, and China Construction Bank saw its net profits rise by 14.1% to $31.1bn. ICBC's deposit balance hit Rmb1,488,000bn, making it the world’s largest bank by deposits, and its market capitalisation reached $236.4bn, the fifth consecutive year it has topped the global rankings by this measure.
