Banking and insurance assets increased steadily. As of the end of 2022 Q4, the total RMB and foreign currency assets of China’s banking institutions at home and abroad reached RMB 379.4 trillion, up by 10.0% year on year. Among those, assets of large commercial banks registered RMB 156.3 trillion, accounting for 41.2% of the total, and up by 12.9% year on year. Assets of joint-stock commercial banks reached RMB 66.5 trillion, accounting for 17.5% of the total, and up by 6.9% year on year.

At the end of 2022 Q4, total assets of the insurance companies amounted to RMB 27.1 trillion, an increase of RMB 2.3 trillion and up by 9.1% from the beginning of the year. Compared with the beginning of the year, assets of property and casualty insurance companies registered RMB 2.7 trillion, up by 9.0%; assets of life insurance companies reached RMB 23.4 trillion, up by 9.3%; assets of reinsurance companies recorded RMB 671.9 billion, up by 10.9%; assets of insurance asset management companies were RMB 103.6 billion, up by 0.6%.

The banking and insurance sectors continued to enhance financial services. As of the end of 2022 Q4, the outstanding balance of loans to micro and small enterprises (“MSEs”, including MSE loans, individual business owner loans and MSE owner loans) reached RMB 59.7 trillion. The outstanding balance of inclusive loans to MSEs with single account credit amount not exceeding RMB 10 million reached RMB 23.6 trillion, up by 23.6% year on year. Loans to government-subsidized housing projects reached RMB 6.3 trillion.

In 2022, insurance companies had recorded primary insurance premium income of RMB 4.7 trillion, up by 4.6% year on year. The claim and benefit payments reached RMB 1.5 trillion, down by 0.8% year on year. The number of new insurance policies issued in 2022 was 55.4 billion, up by 13.27% year on year.

Asset quality of commercial banks is basically stable. As of the end of 2022 Q4, outstanding balance of NPLs of commercial banks was RMB 3 trillion, down by RMB 8.3 billion compared with the end of the previous quarter. The NPL ratio of commercial banks was 1.63%, a decrease of 0.02 percentage point compared with the end of the previous quarter.

As of the end of 2022 Q4, outstanding balance of performing loans of commercial banks was RMB 179.7 trillion, among which the balance of normal loans was RMB 175.6 trillion and the balance of special-mention loans was RMB 4.1 trillion.

Profit of commercial banks remained sound, with strong resilience against risks. In 2022, commercial banks had accumulated net profit of RMB 2.3 trillion, up by 5.4% year on year. The average ROE of commercial banks was 9.33%, up by 0.01 percentage point compared with the end of last quarter. The average ROA was 0.76%, the same as the end of last quarter.

As of the end of 2022 Q4, the balance of loan loss provisions of commercial banks reached RMB 6.1 trillion, which decreased by RMB 7.9 billion compared with the end of last quarter. The provision coverage ratio was 205.85%, up by 0.31 percentage point compared with the end of last quarter. The loan provision ratio was 3.36%, down by 0.05 percentage point compared with the end of last quarter.

As of the end of 2022 Q4, the capital adequacy ratio (CAR) of commercial banks (excluding branches of foreign banks) was 15.17%, up by 0.08 percentage point compared with the end of last quarter; tier 1 CAR was 12.30% and core tier 1 CAR was 10.74%, both up by 0.10 percentage point compared with the end of last quarter.

Liquidity of commercial banks remained sound. As of the end of 2022 Q4, the liquidity coverage ratio of commercial banks was 147.41%, up by 4.73 percentage points compared with the end of last quarter; liquidity ratio was 62.85%, up by 1.19 percentage points compared with the end of last quarter; the RMB excess reserve ratio was 2.05%, up by 0.49 percentage point compared with the end of last quarter; and the loan-to-deposit ratio (domestic loans and deposits denominated in RMB) was 78.76%, up by 0.11 percentage point compared with the end of last quarter.

Solvency status of the insurance sector. At the end of 2022 Q3, the average comprehensive solvency ratio of the 181 insurance companies under the review of Solvency Supervisory Committee was 212%, and the average core solvency ratio was 139.7%. For the comprehensive risk rating, 43 insurance companies were rated as Class A, 114 as Class B, 15 as Class C and 9 as Class D.

1.Total assets and liabilities of the banking sector in 2022 (quarterly)

http://www.cbirc.gov.cn/cn/view/pages/ItemDetail.html?docId=1054665&itemId=954&generaltype=0

2.Table on main supervisory indicators of commercial banks in 2022 (quarterly)

http://www.cbirc.gov.cn/cn/view/pages/ItemDetail.html?docId=1054675&itemId=954&generaltype=0

3.Table on main indicators of commercial banks in 2022 (by types of institutions, quarterly)

http://www.cbirc.gov.cn/cn/view/pages/ItemDetail.html?docId=1054678&itemId=954&generaltype=0

4. Table on inclusive loans to MSEs by banking institutions in 2022 (quarterly)

http://www.cbirc.gov.cn/cn/view/pages/ItemDetail.html?docId=1054683&itemId=954&generaltype=0

5. Table on loans to government-subsidized housing projects by banking institutions in 2022 (quarterly)

http://www.cbirc.gov.cn/cn/view/pages/ItemDetail.html?docId=1054684&itemId=954&generaltype=0

6.Table on solvency status of the insurance sector in 2022 (quarterly)

http://www.cbirc.gov.cn/cn/view/pages/ItemDetail.html?docId=1067928&itemId=954&generaltype=0