(Yicai) Sept. 3 -- Most listed Chinese banks recorded slightly better loan quality for the first half of the year, though pockets of elevated risk remain chiefly in real estate and personal lending.

Of the 42 listed banks that have so far reported earnings for the six months ended June 30, non-performing loan ratios fell at 20 from the end of last year, were unchanged at 15, and rose at seven. Quarter on quarter, 16 lenders posted declines, 21 were flat, and five had increases.

Five of the six state-owned banks shaved their NPL ratios by one to three basis points. Postal Savings Bank of China was the exception, with an increase of two basis points to 0.92 percent, though it still maintained the lowest proportion among the six.

The big six generally reported improved recovery of corporate loans, but pressure from the weak property sector persisted. Industrial and Commercial Bank of China and Bank of Communications saw their real estate-related NPL ratios climb 0.38 percentage point and 0.44 point, respectively. Agricultural Bank of China fared the worst at 5.35 percent.

Among city commercial lenders, Guiyang Bank stood out for loan-quality volatility. After an 88-basis-point surge in the first quarter, its NPL ratio fell back in the second quarter to 1.7 percent at period-end, the fourth highest among the 42 banks.

The lenders with the highest overall NPA ratios were Bank of Lanzhou at 1.81 percent, Bank of Zhengzhou at 1.76 percent, and Qingdao Rural Commercial Bank (QRCB) at 1.75 percent.

For several lenders, real estate and personal loans remained the main sources of stress during the first half. For example, Guiyang Bank’s real estate NPL ratio jumped 70 bips to 1.75 percent, while its personal loan NPA ratio climbed 33 bips to 3.19 percent.

QRCB, which ranked third overall, reported a drop in its general NPL ratio but a surge in property-related distress. Its real estate NPL ratio jumped to 21.32 percent from 7.17 percent, with its non-performing loan balance more than doubling to CNY2.1 billion.

Other banks heavily affected by real estate included Bank of Zhengzhou, with a property NPL ratio of 9.75 percent, Bank of Chongqing at 7.19 percent, Bank of Hangzhou at 6.44 percent, Agricultural Bank of China at 5.35 percent, and China Merchants Bank at 4.74 percent.

Editors: Tang Shihua, Emmi Laine