Mortgage Loan Balances Dip in Majority of Large & Medium Banks; NPL Ratios Rise Amid Economic Slowdown

【Mortgage Loan Balances Decline in 14 of 19 Large and Medium-sized Banks in the First Half of the Year】: According to a review of the latest semi-annual reports of listed banks for 2024, among the 19 listed banks in the first and second tiers of the real estate loan concentration management system, 14 banks witnessed a reduction in their personal housing loan balances compared to the end of 2023, with only five experiencing an increase. In the first half of 2024, the six major state-owned banks collectively saw a decrease of RMB 325.471 billion in personal housing loans, compared to a total decrease of RMB 556.857 billion in 2023.

In terms of asset quality, influenced by factors such as the sluggish real estate sales and economic slowdown, the non-performing loan (NPL) ratios of personal housing loans in large and medium-sized banks have almost all risen from the previous year-end. Among the 14 large and medium-sized listed banks that disclosed relevant data, 13 experienced an increase in their NPL ratios for personal housing loans, while one recorded a decrease, during the first half of this year.