The Zhitong Finance App learned that on November 15, the State Administration of Financial Supervision and Administration released data on the main regulatory indicators of the banking and insurance industry for the third quarter of 2023. The total assets of the banking and insurance industries grew steadily. At the end of the third quarter of 2023, China's banking financial institutions had total local and foreign currency assets of 409.8 trillion yuan, an increase of 9.5% over the previous year. At the end of the third quarter of 2023, the total assets of insurance companies were 29.6 trillion yuan, an increase of 2.4 trillion yuan over the beginning of the year and 9% over the beginning of the year.

The original text is as follows:

Data on the main regulatory indicators of the banking and insurance industry in the third quarter of 2023

I. Steady growth in the total assets of the banking and insurance industries

At the end of the third quarter of 2023, China's banking financial institutions had total local and foreign currency assets of 409.8 trillion yuan, an increase of 9.5% over the previous year. Among them, the total local and foreign currency assets of large commercial banks were 173.3 trillion yuan, up 12.1% year on year, accounting for 42.3%; total local and foreign currency assets of joint stock commercial banks were 69.6 trillion yuan, up 6.7% year on year, accounting for 17%.

At the end of the third quarter of 2023, the total assets of insurance companies were 29.6 trillion yuan, an increase of 2.4 trillion yuan over the beginning of the year and 9% over the beginning of the year. Among them, the total assets of property insurance companies were 2.8 trillion yuan, up 6.6% from the beginning of the year. The total assets of personal insurance companies were 25.4 trillion yuan, up 8.9% from the beginning of the year. The total assets of reinsurance companies were 769.2 billion yuan, up 14.5% from the beginning of the year. The total assets of insurance asset management companies were 104.1 billion yuan, up 0.5% from the beginning of the year.

II. Continued strengthening of financial services in banking and insurance

At the end of the third quarter of 2023, the balance of loans used by banking financial institutions for small and micro enterprises (including small and micro enterprise loans, individual business loans, and small and micro business owner loans) was 69.2 trillion yuan, of which the balance of inclusive small and micro enterprise loans granted to a single household with a total credit of 10 million yuan and below was 28.4 trillion yuan, an increase of 23.9% over the previous year. The balance of loans for affordable housing projects is 6.5 trillion yuan.

In the first three quarters of 2023, insurance companies' original insurance premium income was 4.3 trillion yuan, an increase of 11% over the previous year. Compensation and benefits expenses amounted to 1.4 trillion yuan, an increase of 20.1% over the same period last year. The number of new insurance policies added was 53.7 billion, an increase of 39.2% over the previous year.

3. The quality of credit assets of commercial banks is basically stable

At the end of the third quarter of 2023, commercial banks (corporate history, same below) had a non-performing loan balance of 3.2 trillion yuan, an increase of 24.4 billion yuan over the end of the previous quarter; the non-performing loan ratio of commercial banks was 1.61%, down 0.01 percentage points from the end of the previous quarter.

At the end of the third quarter of 2023, commercial banks had a normal loan balance of 197.1 trillion yuan, of which the balance of normal loans was 192.7 trillion yuan, and the balance of concerned loans was 4.4 trillion yuan.

4. The overall risk compensation capacity of commercial banks is adequate

In the first three quarters of 2023, commercial banks achieved a cumulative net profit of 1.9 trillion yuan, an increase of 1.6% over the previous year. The average return on capital was 9.45%, down 0.21 percentage points from the end of the previous quarter. The average return on assets was 0.74%, down 0.01 percentage points from the end of the previous quarter.

At the end of the third quarter of 2023, the loan loss reserve balance of commercial banks was 6.7 trillion yuan, an increase of 107.1 billion yuan over the end of the previous quarter; the provision coverage rate was 207.89%, up 1.8 percentage points from the end of the previous quarter; and the loan provision rate was 3.35%, which was basically the same as at the end of the previous quarter.

At the end of the third quarter of 2023, the capital adequacy ratio of commercial banks (excluding branches of foreign banks) was 14.77%, up 0.11 percentage points from the end of the previous quarter. The Tier 1 capital adequacy ratio was 11.9%, up 0.12 percentage points from the end of the previous quarter. The core Tier 1 capital adequacy ratio was 10.36%, up 0.08 percentage points from the end of the previous quarter.

5. Liquidity levels of commercial banks remain steady

At the end of the third quarter of 2023, the liquidity coverage rate of commercial banks was 143.54%, down 7.3 percentage points from the end of the previous quarter; the liquidity ratio was 65.15%, up 0.8 percentage points from the end of the previous quarter; the RMB excess reserve ratio was 1.48%, down 0.3 percentage points from the end of the previous quarter; and the deposit/loan ratio (RMB domestic caliber) was 78.2%, up 0.5 percentage points from the end of the previous quarter.

6. The solvency situation of the insurance industry

At the end of the third quarter of 2023, the comprehensive solvency ratio of the insurance industry was 194%, and the core solvency ratio was 126%. The comprehensive solvency ratios of property insurance companies, personal insurance companies, and reinsurance companies were 232%, 184.1%, and 278.3%, respectively; the core solvency ratios were 200%, 108.6%, and 242.3%, respectively.

This article was compiled from the official WeChat account of the “State Financial Supervisory Administration”, Zhitong Finance Editor: Yang Wanlin.