Total assets have first exceeded 444 trillion, revealing the "financial foundation" of the banking industry!

How rich is China's banking industry?

The latest statistics released by the National Financial Regulatory Administration reveal the answer to this question.

Relevant statistics show that by the end of 2024, the total assets of China's banking financial institutions reached 444.6 trillion yuan, an increase of 6.5% compared to the beginning of the year, indicating overall good performance.

In addition, the liability level of China's banking industry also increased year-on-year in 2024, reaching 408.11 billion yuan by the end of last year, which indicates that the mainland banking industry conducted its business relatively steadily last year.

1. Last year's growth rate fluctuated downward

For banking financial institutions, assets and liabilities reflect the comprehensive strength and business capabilities of an institution, attracting significant attention.

According to authoritative statistics from the Financial Regulatory Administration, by the end of the fourth quarter of 2024, the total assets of China's banking financial institutions reached 444.6 trillion yuan, a year-on-year increase of 6.5%.

Moreover, throughout the four quarters of 2024, the overall growth rate of total assets in the banking sector gradually declined. The year-on-year growth rate at the end of the first quarter was 8.1%, 6.4% at the end of the second quarter, 7.3% at the end of the third quarter, and finally settled at 6.5% in the fourth quarter.

2. Gradual decline in growth rate

The overall growth rate of liabilities in the banking sector also decreased quarter by quarter, with the rates at the end of the last four quarters being 8.1%, 6.4%, 7.2%, and 6.5%. Only the growth rate in the fourth quarter was slightly lower than that of total assets.

Specifically, since total assets and total liabilities reflect the overall development level of institutions, we can also observe changes in growth rates among different types of institutions from the authoritative statistics.

Among them, large commercial banks, which are the backbone of the industry, showed strong resilience in growth, with total assets reaching 190.3 trillion yuan by the end of last year, accounting for 42% of the total assets of the industry, achieving a year-on-year growth of 7.6%.

Joint-stock commercial banks, which have strong comprehensive strength and specialization, maintained a relatively stable growth rate, with an annual increase of 4.7% and total assets of 74.2 trillion yuan at the end of the year. Among joint-stock banks, China Merchants Bank alone had total assets exceeding 12 trillion yuan, with a growth rate exceeding 10% last year (according to China Merchants Bank's 2024 performance report).

City commercial banks, which are flexible in operation and have regional characteristics, also ranked among the top in growth rates among various institutions. Statistics from the administration show that the total assets of domestic city commercial banks reached 60.2 trillion yuan by the end of last year, a year-on-year increase of 9.0%.

Rural financial institutions, which have a wide reach, continue to maintain their own pace, with statistics showing that by the end of 2024, the total assets of various rural financial institutions reached 57.9 trillion yuan, with a year-on-year growth rate of 6.0%.

Additionally, other financial institutions, including policy banks, the National Development Bank, private banks, foreign banks, non-bank financial institutions, trust companies, and wealth management companies, had relatively low growth rates by the end of last year. By the end of the fourth quarter, the total assets of other financial institutions reached 62.06 trillion yuan, with a year-on-year growth rate of 3.3%.

Overall, the banking industry in 2024 developed relatively steadily, with total assets maintaining growth, and the growth rate of total liabilities being roughly in line with that of total assets. Among financial asset institutions, large commercial banks still occupy a dominant position, while joint-stock banks, city commercial banks, rural financial institutions, and other types of institutions develop in coordination, forming a structure of "one large and four small." The pattern remains distinct.

III. Operating Level Remains Stable

From the perspective of operating and risk management indicators, in 2024, commercial banks achieved a cumulative net profit of 2.32 trillion yuan, slightly down from 2.38 trillion yuan in 2023, but overall resilience is outstanding.

Among other indicators, the asset profit margin of commercial banks decreased from 0.70% in 2023 to 0.63%; the capital profit margin fell from 8.93% in 2023 to 8.10%, and the net interest margin adjusted from 1.69 percentage points to 1.52 percentage points. This indicates that the banking industry as a whole faces severe challenges in 2024, but has overcome difficulties.

Additionally, by the end of the fourth quarter of 2024, the capital adequacy ratio of commercial banks (excluding foreign bank branches) was 15.74%, an increase of 0.12 percentage points from the previous quarter; the Tier 1 capital adequacy ratio was 12.57%, up 0.14 percentage points from the previous quarter; and the core Tier 1 capital adequacy ratio was 11.00%, an increase of 0.13 percentage points from the previous quarter, showing good risk compensation capability.

Moreover, the provision coverage ratio of commercial banks also remained at a high level. By the end of 2024, the provision coverage ratio was 211.19%, an increase of 1.71 percentage points from the previous quarter, indicating strong resilience against potential risks.

Overall, the banking industry's risk compensation capability in 2024 is generally sufficient, with good performance in asset profit margins and capital adequacy ratios, demonstrating strong resilience against risks.

III. Asset Quality "Trump Card" Revealed

From the perspective of credit asset quality, by the end of the fourth quarter of 2024, the non-performing loan balance of commercial banks was 3.3 trillion yuan, a decrease of 97.7 billion yuan from the previous quarter. Among them, the non-performing loan balance of large commercial banks was 1.4 trillion yuan.

The non-performing loan ratio of commercial banks was 1.50%, a decrease of 0.05 percentage points from the previous quarter, with large commercial banks having a non-performing loan ratio of 1.23%. The non-performing loan ratios of rural commercial banks and urban commercial banks were relatively high, at 2.8% and 1.76%, respectively.

In terms of loan classification, the balance of normal loans was 214.7 trillion yuan, of which the balance of normal loans was 209.8 trillion yuan, and the balance of attention loans was 4.8 trillion yuan, indicating overall stability in credit asset quality.

Overall, the credit asset quality of commercial banks in 2024 is generally stable, with a slight decrease in the non-performing loan ratio, showing a positive development trend.

However, the non-performing loan ratios of rural commercial banks and urban commercial banks remain at relatively high levels.

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