Fitch Says China Banks Profitability Pressures To Continue

Fitch Says China Banks Profitability Pressures To Continue

Fitch Ratings said major Chinese banks' are likely to see subdued earnings growth in 2016, underscoring its negative sector outlook.

Chinese bank's results for 2015 are set to be released next week. Banks are expected to show subdued earnings growth amid margin compression and asset deterioration, the agency said.

Fitch forecast Chinese bank profits to decline this year unless authorities relax the minimum NPL provisioning requirement of 150 percent.

According to Fitch, a combination of interest-rate cuts and worsening asset quality will continue to have an impact on profitability in 2016.

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