Big data changes life

  In an era defined by globalization, digitization, and  smart technologies, businesses face a crucial need for  adaptation. Agile brand strategies, continuous metrics,  and cutting-edge research are imperative to anticipate  customer needs in a dynamic landscape.  

  In the first half of 2023, despite the complex and severe international environment, China‘s economy continued to recover and was generally stable. However, there are new difficulties and challenges such as insufficient domestic demand, operational difficulties for some enterprises and hidden risks in key sectors. The foundation for sustained economic recovery and development still needs to be solid. The banking industry, amongst all, faces these challenges directly and increase efforts to serve the real economy. For listed banks, the profit growth rate slowed down while the total assets maintained growth. The balances of non-performing loan (“NPL”) have shown an upward trend. However, the NPL ratio has dropped from the beginning of the year. The capital adequacy ratio (“CAR”) has shown an overall downward trend. The divergence in banks’ performances has become increasingly obvious.

  This report is the 17th annual survey that KPMG has published for China’s banking industry. This edition provides analysis of China’s economic and financial conditions, a review of banking development and its outlook going forward, interpretation of regulatory policies, analysis of important topics, and banks’ performance data. Amid rising uncertainties in the industry, we have invited experts from KPMG China’s various banking service lines to analyse important issues in depth and provide insights into development trends. Our discussions focus on topics such as digital transformation, sustainability, risk management, data-driven initiatives, and management compliance. From industry best practices and tech development trends, to business scenario innovation, we have shared our exclusive insights into the industry’s current situation, and provided ideas for innovative solutions.