ICBC lends more, earns more, and loses more

I don’t believe more people are eligible for a loan in the recession than the boom time. Most people loan money from banks now may seeing now as an opportunity to get into stock market. Instead stimulate the economy, banks stimulate the stocks. Instead spending the money they borrow, they invest. The so-called recovery is very fragile, people don’t realized economy need them to spend the cash, buy stuff. The demand didn’t raised but producers see people’s sentiment raised, they boost output. There we go, another bubble. If investors withdraw from stock market, what is that picture looks like? Are they still eligible for more loans? Can they even return back to market? Will they default on their loans?

“HONG KONG (MarketWatch) — Industrial & Commercial Bank of China Ltd., the world’s most valuable bank by market capitalization, said Thursday its first-half profit rose 2.9% on record loan growth, higher fee-based income and a drop in allowances on impaired assets as the economy rebounded.
…
The bank said its non-performing loans totaled 5.817 billion yuan, a lowering of its non-performing loan ratio to 1.81% from 2.29%. It said efforts were made to eliminate loans with potential risks and recover or write-off non-performing ones.

Income from lending activities fell to 116.04 billion yuan from 131.79 billion yuan. ”

http://www.marketwatch.com/story/icbcs-first-half-net-income-rises-29-2009-08-20

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