China banks' time deposits up but loans slow in Q1

Accounts with specified maturity dates rose 11.8% for ICBC, 7.5% for CCB, and 6.2% for ABC.

The time deposits of China’s largest banks rose at a faster pace in the first quarter of the year, according to UOB Kay Hian. 

Time deposits are interest-bearing deposit accounts with a specified date of maturity which may take the form of a savings account or a certificate of deposit. 

Time deposits for ICBC rose 11.8% on a quarterly basis whilst CCB and ABC time deposits increased 7.5% QoQ and 6.2% QoQ.

However, loan growth slowed from a range of 9-17% to 7-10% in Q1 as banks held back in the disbursement of new loans amidst Beijing’s widespread deleveraging campaign.

Also read: China's shadow banking crackdown slows home market 

Fees & commissions from wealth management and agency distribution were also negatively hit as banks adjusted to impending new regulations on asset management. CCB, ABC, and BoCom experienced contraction in fee income of 2.2%, 8.2% and 3.9% YoY.

Only ICBC and CMB were able to weather the downturn and after posting marginal growth rates of 1.6% and 1.5% yoy respectively in wealth management fees and commissions.