(Yicai Global) May 6 -- The non-performing loan ratio at China’s six largest banks fell in the first quarter and the state-owned lenders even logged a slight profit as the country makes a full recovery from the economic fallout caused by the Covid-19 pandemic, according to the latest data.

The NPL ratio at the six banks was 1.89 percent at the end of the first quarter, down 0.02 point from the start of the year, according to the China Banking and Insurance Regulatory Commission. Outstanding NPLs increased 3 percent to CNY3.6 trillion (USD555.6 billion).

Profit was in the single digit range, but they all reported steady year on year growth, earning CNY3.7 billion (USD571 million) in net profit a day in the three months ended March 31, according to their first-quarter earnings reports.

Industrial and Commercial Bank of China, China Construction Bank, Bank of China, Agricultural Bank of China, Bank of Communications, Postal Savings Bank of China are the country’s largest banks by assets.

Postal Savings Bank of China was the best performer on both counts. It logged a NPL ratio of 0.86 percent at the end of the first quarter, well below the industry average and a drop of 0.02 point from the end of last year. Its outstanding bad loans grew 1.7 percent over the period to CNY51.2 billion (USD7.9 billion).

It also made the most profit in the first quarter, jumping 5.51 percent from the same period last year to CNY21.2 billion (USD3.2 billion). It was the only bank among the six to post profit growth of over 5 percent.

Industrial and Commercial Bank of China, the world’s biggest lender by assets, had the slowest profit growth out of the six at 1.46 percent to CNY85.7 billion (USD13 billion).

Bank of China’s NPL ratio fell to 1.3 percent, down 0.16 point from the end of last year. Outstanding bad loans came to CNY194.9 billion (USD30.1 billion), CNY12.4 billion less than at the start of the year.

Bank of Communications ranked the worst out of the six, with an NPL ratio of 1.64 percent, a drop of 0.03 point from the end of last year. This amounted to CNY101.1 billion of outstanding bad loans, up CNY3.4 billion from the end of last year.

Editor: Kim Taylor