Electronic banking fees of CCB and ACB surged 60% and 33% respectively.
Chinese banks booked significantly higher fees from their online banking units in Q2 as they turn to digital alternatives to offset softening growth in lending, according to UOB Kay Hian.
Beijing’s widespread deleveraging campaign has brought loan growth to a halt with most banks posting slower lending figures at about 4.5% YTD, Jonathan Koh, UOB analyst said in a statement.
As a result, banks are turning more and more to contributions from their digital arm to eke out profit gains. In fact, Agricultural Bank of China (ABC) and China Merchants Bank (CMB) both booked strong double-digit growth in fees at 19.2% and 15.1% respectively in Q2.
Fees from state lenders Industrial and Commercial Bank of China and China Construction Bank also rose by 5.4% and 6% over the same period.
“Most banks benefited from strong double-digit growth in contributions from bank cards. CCB and ABC achieved breakthrough with surge in fees from electronic banking of 60% and 38% yoy respectively,” added Koh.
In fact, the volume of mobile payments handled by Chinese banks surged 16.8% to $11.1t (CNY70.8t) in Q1 as the country benefits from some of the highest mobile take-up rates in cashless alternatives.
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