Chinese banks cut bad loan ratios for 2016

China Construction Bank and Agbank reported lower NPL ratios.

According to Bloomberg, two of China’s biggest lenders cut their bad-loan ratios as they notched improved profits in 2016, a sign that the nation’s banking industry benefited from a rebound late last year in the world’s second-biggest economy.

"Before this week, analysts had expected the five largest lenders to report their first decline in combined annual profit since 2004. While the Construction Bank and Agbank numbers already indicate a better overall outcome, some analysts remain cautious on reading too much into the improved NPL figures, amid mixed views on whether China’s economy can sustain its fourth-quarter revival," reported Bloomberg.

Read the full story here.