China banks’ bad loans slightly up

Xinhua, Beijing :
The ratio of non-performing loans for commercial banks in China climbed to 1.08 percent by the end of June, up 0.04 percentage point from the end of March, latest official data showed.
By the end of June, non-performing loans in the banking sector stood at 694.4 billion yuan (112.84 billion U.S. dollars), 48.3 billion yuan more than the previous quarter, according to a report released by the China Banking Regulatory Commission.
The regulator said the banks’ credit risks were slightly up but the quality of their credit assets remained generally stable. In addition, the sector had fairly strong capability of risk compensation, with a loan loss reserve totaling 1.83 trillion yuan at the end of June.
In the first six months, profits of China’s commercial banks rose 13.96 year on year to 858.3 billion yuan, the report said.
During the same period, loans targeting agriculture climbed 16.6 percent year on year while those for small and micro businesses increased 16.9 percent, as China stepped up credit support for the two sectors.