China's commercial banks reported profits reached 970.3 billion yuan for the six months ended June, up 7.92% from a year earlier, China Banking Regulatory Commission data showed.
The banks' non-performing loan ratio held steady at 1.74% at end-June, the same level recorded at end-March and end-2016. That level was down from 1.76% at the end of the third quarter of 2016, said a South China Morning Post report.
Total bad loans rose to 1.64 trillion yuan, up from 1.58 trillion yuan at end-March. "Special mention loans", or assets presenting unwarranted credit risks, dipped to 3.64% by end-June from 3.77% at end-March.
Loan loss reserves increased to 2.9 trillion yuan, up by 74.7 billion yuan from last quarter, while the provision coverage was at 177.2%, down 1.58 percentage points from end-March, said a Xinhua report in China Daily.
"The data reflected that banking asset quality is under control," said Zhao Yarui, a senior researcher at Bank of Communications. "Yet, credit risks still remain given the still relatively large scale of bad loans and special mention loans," said an SCMP report.
As of Aug. 14, US$1 was equivalent to 6.67 Chinese yuan.