<p>China's "big four" banks have suffered a rare profit decline in the first half of the year, joining a growing body of financial institutions worldwide that have been hit by the coronavirus pandemic.</p>.<p>Bad-loan provisions rose as the pandemic hammered Chinese business activity, causing a historic first-quarter contraction and weighing on an economy that was already in long-term growth slowdown.</p>.<p>Bloomberg News said the profit declines -- reported over the weekend -- were the largest in more than a decade for the banks, which are closely supervised by the Chinese government and for years have typically posted slight but steady increases.</p>.<p>"The pandemic sent the world economy into a serious recession, posing heavier pressure on banks' business operations and asset quality in 2020," Industrial and Commercial Bank of China ICBC said in an earnings report.</p>.<p>ICBC, the world's largest lender in terms of assets, and Bank of China both said first-half profit fell around 11 percent, while China Construction Bank and Agricultural Bank of China each reported a decline of around 10 percent.</p>.<p>Shares in the four banks, all listed both on the Hong Kong and Shanghai stock exchanges, were barely changed on Monday.</p>.<p>ICBC also indicated in its report that profit was likely impacted by government-directed initiatives to enlist financial institutions in the national pandemic recovery effort by extending credit to keep the economy steady.</p>.<p>The banks warned of further disruptions ahead.</p>.<p>"The global economy will face a variety of adversities in the second half of 2020, including sharp contraction in international trade and investment, turbulent international financial markets, restricted international exchange, economic de-globalisation and rising geopolitical risks," ICBC warned.</p>.<p>The pandemic, which first emerged in China late last year, caused a 6.8 percent contraction in the Chinese economy -- the world's second-largest after the United States -- in the first quarter.</p>.<p>Growth returned in the second quarter, with the economy expanding 3.2 percent, still a historic low.</p>.<p>The Chinese banks are just the latest institutions to report pandemic damage.</p>.<p>British-based, Asia-focused lender HSBC reported a 69 percent slump in earnings earlier this month, and top French bank Societe Generale announced a second-quarter loss of more than one billion euros.</p>.<p>UBS, Barclays and others also have reported major financial hits linked to the pandemic.</p>
<p>China's "big four" banks have suffered a rare profit decline in the first half of the year, joining a growing body of financial institutions worldwide that have been hit by the coronavirus pandemic.</p>.<p>Bad-loan provisions rose as the pandemic hammered Chinese business activity, causing a historic first-quarter contraction and weighing on an economy that was already in long-term growth slowdown.</p>.<p>Bloomberg News said the profit declines -- reported over the weekend -- were the largest in more than a decade for the banks, which are closely supervised by the Chinese government and for years have typically posted slight but steady increases.</p>.<p>"The pandemic sent the world economy into a serious recession, posing heavier pressure on banks' business operations and asset quality in 2020," Industrial and Commercial Bank of China ICBC said in an earnings report.</p>.<p>ICBC, the world's largest lender in terms of assets, and Bank of China both said first-half profit fell around 11 percent, while China Construction Bank and Agricultural Bank of China each reported a decline of around 10 percent.</p>.<p>Shares in the four banks, all listed both on the Hong Kong and Shanghai stock exchanges, were barely changed on Monday.</p>.<p>ICBC also indicated in its report that profit was likely impacted by government-directed initiatives to enlist financial institutions in the national pandemic recovery effort by extending credit to keep the economy steady.</p>.<p>The banks warned of further disruptions ahead.</p>.<p>"The global economy will face a variety of adversities in the second half of 2020, including sharp contraction in international trade and investment, turbulent international financial markets, restricted international exchange, economic de-globalisation and rising geopolitical risks," ICBC warned.</p>.<p>The pandemic, which first emerged in China late last year, caused a 6.8 percent contraction in the Chinese economy -- the world's second-largest after the United States -- in the first quarter.</p>.<p>Growth returned in the second quarter, with the economy expanding 3.2 percent, still a historic low.</p>.<p>The Chinese banks are just the latest institutions to report pandemic damage.</p>.<p>British-based, Asia-focused lender HSBC reported a 69 percent slump in earnings earlier this month, and top French bank Societe Generale announced a second-quarter loss of more than one billion euros.</p>.<p>UBS, Barclays and others also have reported major financial hits linked to the pandemic.</p>