The high profits of Chinese banks are mainly driven by their fast-expanding assets, but might not be sustainable due to potential risks from non-performing loans, Niu Ximing, chairman of Bank of Communications Co, China's fifth largest lender, said at a financial forum held Sunday in Shanghai.
Chinese banks' total assets rose to more than 100 trillion yuan ($16.3 trillion) in 2012 from just 20 trillion yuan in 2002. The amount of loans has brought banks high profits. But if the rate of non-performing loans (NPLs) increases, it could bring the industry great losses, he said.
