Banking and insurance assets kept increasing. As of the end of 2024 Q2, the total RMB and foreign currency assets of China’s banking institutions reached RMB 433.1 trillion, up by 6.6% year on year. Among those, assets of large commercial banks registered RMB 185.1 trillion, up by 7.9% year on year, and accounting for 42.7% of the total. Assets of joint-stock commercial banks reached RMB 72.1 trillion, up by 3.7% year on year, and accounting for 16.7% of the total.

As of the end of 2024 Q2, total assets of the insurance companies amounted to RMB 33.8 trillion, up by RMB 2.3 trillion or 7.4% from the beginning of the year. Among those, assets of property and casualty insurance companies registered RMB 3 trillion, up by 7.6%; assets of personal insurance companies reached RMB 29.4 trillion, up by 7.4%; assets of reinsurance companies recorded RMB 806.4 billion, up by 7.9%; assets of insurance asset management companies were RMB 122.3 billion, up by 16.2%.

The banking and insurance sectors continued to enhance financial services. As of the end of 2024 Q2, the outstanding balance of loans to micro and small enterprises (“MSEs”, including MSE loans, and loans to individual business owners and MSE owners) reached RMB 78 trillion. The outstanding balance of inclusive loans to MSEs with single account credit limit not exceeding RMB 10 million reached RMB 32 trillion, up by 17.1% year on year.

In the first half of 2024, insurance companies had recorded primary insurance premium income of RMB 3.55 trillion, up by 4.9% year on year. Insurance claim and benefit payments reached RMB 1.23 trillion, up by 33.1% year on year. The number of new insurance policies was 47.2 billion, up by 40% year on year.

Asset quality of commercial banks kept basically stable.As of the end of 2024 Q2, outstanding balance of NPLs of commercial banks (legal entity, the same below) was RMB 3.3 trillion, down by RMB 27.2 billion from the end of the previous quarter. The NPL ratio of commercial banks was 1.56%, down by 0.03 percentage points compared with the end of the previous quarter.

As of the end of 2024 Q2, outstanding balance of performing loans of commercial banks was RMB 210.8 trillion, among which the balance of normal loans was RMB 206.1 trillion and the balance of special-mention loans was RMB 4.8 trillion.

Commercial banks remained resilient against risks.By the end of 2024 Q2, commercial banks had accumulated net profit of RMB 1.3 trillion, up by 0.4% year on year. The average ROE of commercial banks was 8.91%, down by 0.65 percentage points compared with the end of last quarter. The average ROA was 0.69%, down by 0.05 percentage points compared with the end of last quarter.

As of the end of 2024 Q2, the balance of loan loss provisions of commercial banks was RMB 7 trillion, RMB 104 billion higher compared with the end of last quarter. The provision coverage ratio was 209.32%, up by 4.78 percentage points compared with the end of last quarter. The loan provision ratio was 3.26%, remain basically unchanged compared with the end of the previous quarter.

As of the end of 2024 Q2, the capital adequacy ratio (CAR) of commercial banks (excluding foreign bank branches) was 15.53%, up by 0.1 percentage points compared with the end of the previous quarter. Tier-1 CAR was 12.38%, up by 0.04 percentage points and core tier-1 CAR was 10.74%, down by 0.02 percentage points.

Liquidity indicators of commercial banks remained stable. As of the end of 2024 Q2, the liquidity coverage ratio of commercial banks was 150.7%, down by 0.14percentage points compared with the end of last quarter; net stable funding ratio was 125.92%%, up by 0.59 percentage points compared with the end of last quarter; liquidity ratio was 72.38%, up by 3.72 percentage points compared with the end of last quarter; the RMB excess reserve ratio was 1.72%, up by 0.02 percentage points compared with the end of last quarter; and the loan-to-deposit ratio (domestic loans and deposits denominated in RMB) was 80.59%, up by 1.78 percentage points compared with the end of last quarter.

Solvency status of the insurance sector remained adequate. As of the end of 2024 Q2, the comprehensive solvency ratio of the insurance sector was 195.5%, and the core solvency ratio was 132.4%. The comprehensive solvency ratios of property and casualty insurance companies, personal insurance companies and reinsurance companies were 237.9%、185.9%、259.3% respectively, and the core solvency ratios were 210.2%、115.7%、226.9% respectively.

Appendix:

1. Total assets and liabilities of the banking sector in 2024 (quarterly)

http://www.nfra.gov.cn/cn/view/pages/ItemDetail.html?docId=1164264&itemId=954

2. Table on main supervisory indicators of commercial banks in 2024 (quarterly)

http://www.nfra.gov.cn/cn/view/pages/ItemDetail.html?docId=1164263&itemId=954

3. Table on main indicators of commercial banks in 2024 (by types of institutions, quarterly)

http://www.nfra.gov.cn/cn/view/pages/ItemDetail.html?docId=1164262&itemId=954

4. Table on inclusive loans to MSEs by banking institutions in 2024 (quarterly)

http://www.nfra.gov.cn/cn/view/pages/ItemDetail.html?docId=1164261&itemId=954

5. Table on solvency status of the insurance sector in 2024 (quarterly)

http://www.nfra.gov.cn/cn/view/pages/ItemDetail.html?docId=1164249&itemId=954