China's banks poised for earnings growth after pandemic losses

Profit rebound comes amid regulatory moves and broader economic recovery

One analyst says the "normalization" of monetary policy means the central bank "is likely to gradually exit relending programs, thus supporting a stabilizing net interest margin." © Reuters

NARAYANAN SOMASUNDARAM, Nikkei Asia chief banking and financial correspondent

February 2, 2021 12:02 JST

HONG KONG -- The worst could be over for Chinese banks.

Earnings for both state-owned and private lenders, which play an outsized role in the world's second-largest economy, are poised for a multiyear recovery from 2020's decline, the first drop in a decade, according to analysts' estimates.