real-time news and commentary for investors
Wednesday, Aug 28
Agricultural Bank of China bad loan provisions fall
- Ag Bank set aside $1.63B for bad loan provisions in Q2 vs. $1.96B a year ago, helping net income climb 22% to $7.4B. Nonperforming loans represent 1.25% to total loans, well above the average for the country's big 5 banks of 0.97%.
- Net interest margin of 2.74% fell 11 bps from a year earlier, following a pair of rate cuts by the PBOC. Analysts expect margins to continue to fall - not necessarily from rate cuts - but from rate liberalization as strict controls on deposit and lending rates are lifted.
- Shares fell 1.5% in Hong Kong trade overnight, bringing the YTD loss to 14% - worst among China's big lenders. The Global X China Financials ETF (CHIX -0.9%) is off 11% YTD.
- China equity ETFs: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP.